More bad news for general partners in fundraising mode: The $1.6 billion Oklahoma Police Pension & Retirement System has run out of capacity to back new private equity funds, according to Executive Director and Chief Investment Officer Steven Snyder.
After committing $7.5 million to Oaktree Capital Management’s OCM Opportunities Fund VIII LP in December, the pension fund is apparently too far above its target allocation to consider new commitments. The Oklahoma Police Pension & Retirement System had an actual allocation to private equity of 11.7 percent as of Dec. 31, 2009, ahead of a target allocation to private equity of 10 percent, although still within an acceptable range of 5 percent to 15 percent.
The pension fund’s private equity program includes distressed debt ($103.5 million in 11 funds), venture capital ($90.5 million in 10 funds), mezzanine debt ($42 million in five funds), buyout ($142 million in 12 funds) and secondary funds ($20 million in one fund).
OCM Opportunities Fund VIII LP is earmarked to invest globally in the distressed debt of large, overleveraged companies that are still operationally sound, using a distressed debt-trading strategy. This was the only fund the limited partner backed in 2009. The year before, the limited partner made three commitments: $7.5 million to Oaktree Opportunities VII B; $10 million to TCW Mezzanine Fund V; and $10 million to Calera Capital Fund IV.