Ohio Police & Fire commits up to $40 mln to RRJ’s third fund

  • RRJ targeting $4 bln for Fund III
  • Sophomore fund has produced 25.56 pct IRR 
  • Ohio Police & Fire has 5.1 pct allocation to PE

RRJ is targeting $4 billion with a $4.5 billion hard cap for its third fund, according to Ohio Police & Fire.

The firm set a relatively broad mandate for Fund III, with the ability to pursue opportunities in buyout, growth equity and special situations in China and Southeast Asia, according to documents from the New Jersey Division of Investment, which committed up to $150 million to the fund in May.

The GP plans to commit at least $150 million to Fund III, according to New Jersey documents.

Richard Ong, the former head of Goldman Sachs Asian investment bank, founded RRJ in March 2011 and quickly raised $2.3 billion for its debut fund by June of that year. Fund I went on to net a 15.72 percent internal rate of return as of Dec. 31, according to New Jersey documents.

Charles Ong, Richard’s brother and a former CIO of Temasek Holdings, joined RRJ as its co-CEO in 2012, according to the firm’s website. RRJ raised $3.5 billion for its sophomore fund the following year. RRJ II netted a 25.56 percent IRR through Dec. 31, according to New Jersey documents.

The Hong Kong-based firm could not be reached for comment. RRJ also maintains an office in Singapore.

Ohio Police & Fire’s latest commitment will help the $14.75 billion pension move closer to its 8 percent target allocation to private equity. The pension valued its private equity portfolio at $752 million as of June 25, good for a 5.1 percent allocation to the asset class, according to pension documents.

The retirement system has been an active investor in private equity over the last several months. In May, Ohio Police & Fire committed up to $30 million to Riverstone Global Energy and Power Fund VI, according to pension documents. The pension has also committed to funds raised by EQT Holdings, Black Diamond Capital Management and TA Associates this year.