Oregon fund plots up to $3.5bn in new private equity commitments in 2020

The Oregon Investment Council, which oversees the $79 billion Oregon Public Employees’ Retirement Fund, is planning to make new private equity commitments totaling between $2.5 billion and $3.5 billion in 2020.

Trustees at their January meeting also approved a $650 million allocation to Bridgewater All Weather strategy within Oregon’s risk parity portfolio. The other two managers in the $2 billion risk parity portfolio are the Man AHL TargetRisk Portfolio and PanAgora Risk Parity Multi-Asset.

In mid-December, Connecticut-based Bridgewater Associates also received a $250 million top up for its Bridgewater Optimal Portfolio that sits within the pension fund’s alternative investment portfolio.

Other alternatives investment allocations from late December include a $250 million top-up of the GMO Systematic Global Macro Fund, while earlier in the month trustees approved a new $200 million commitment to Clearlake Capital Partners VI.

The Oregon state treasury portfolio is unusual in that its staff maintains a 40% exposure to private market strategies. Within private markets is the private equity portfolio, which has been an area of active investing over the past year.

Staffers told trustees they anticipated 10 to 15 new commitments ranging from $100 million to $500 million at the January 30 meeting.

Over the course of 2019, the Oregon Investment Council approved 14 new private equity commitments totaling $2.7 billion. As of yearend, the top five managers in the private equity portfolio made up 30% of the $17 billion program. Those large managers are (in order of exposure): KKR, TPG, Vista, Blackstone and Apollo.

TorreyCove Partners, which was recently acquired by Aksia, is the Oregon Investment Council’s private equity consultant.