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Oregon kicks in another $250 mln to Blackstone separate account

  • Oregon committed $250 mln to Blackstone in 2013
  • Firm has invested $77.7 mln of that commitment
  • Blackstone targeting $7 bln to $8 bln for next TacOpps fund

The Oregon State Treasury tacked an additional $250 million onto a separate account managed by The Blackstone Group, Chief Investment Officer John Skjervem told Buyouts in an email.

The state Treasury’s latest commitment is a follow-on to the $250 million it committed to a Blackstone Tactical Opportunities-O account in May 2013. Blackstone invests the fund opportunistically across several strategies, including public equity, structured equity, minority private equity, real estate, commodities, real estate, real assets and credit.

Oregon secured a “lower than normal” management fee and carry percentage for the account, which has a three year investment period, according to May 2013 meeting materials.

The firm had invested $77.7 million of Oregon’s initial $250 million commitment as of June 30, according to an investment report available through Oregon’s website. Blackstone Tactical Opportunities-O returned $2.4 million as of the same date.

Blackstone closed its first Tactical Opportunities fund in March, attracting $5.6 billion of commitments in the form of large separate accounts and a commingled fund for smaller investors. In addition to Oregon, the California Public Employees’ Retirement System, New York State Common Retirement Fund and New Jersey Division of Investment have Tactical Opportunities accounts.

Blackstone’s Tactical Opportunities business generated strong returns as of September, with early mark-ups driving net internal rates of return as high as 23 percent, one LP told Buyouts sister publication peHUB.

Even so, each of the larger separate accounts track their returns separately, which makes it difficult to assess the platform’s overall performance. CalPERS pegged its $800 million account as having generated a 1.1x multiple and 10.9 percent net IRR as of March 31, according to its website. As of June, New Jersey marked its $340 million account at 1.18x.

In July, Blackstone President Hamilton “Tony” James said the firm was raising a follow-up to its first Tactical Opportunities fund. peHUB reported Blackstone is targeting between $7 billion and $8 billion for the vehicle.