Oregon nears upper limit of PE allocation

  • Oregon committed $200 mln to a China-focused consumer fund
  • The state’s $73.6 bln retirement fund has a target PE allocation of 17.5 pct
  • Oregon is over that target, and is just shy of the upper limits of its allocation range

Oregon Investment Council committed $250 million to two private equity partners, adding to a portfolio that is already near the upper limits of its target allocation range.

The state’s $73.6 billion Oregon Public Employees’ Retirement Fund has a 17.5 percent target for PE, with a range of 13.5 percent to 21.5 percent. As of October, before the new commitments, PERF was already at 21.4 percent allocated to PE.

The council’s private equity committee approved a $200 million commitment to ClearVue Partners Fund III, which focuses on PE opportunities in China’s consumer sector, and $50 million to Union Square Ventures’ USV 2019 and USV Opportunity 2019 funds.

Union Square Ventures invests in emerging technology businesses and connected networks, in industries including financial services, education, blockchain, digital networking and ownership management. Oregon has previously invested with USV funds.

Oregon plans to discuss another potential PE commitment at its January meeting, along with an overall review of the PE program. New commitments discussed at the investment council level tend to be larger, since the private equity committee is authorized to commit up to $350 million under delegated authority.

Action Item: Read Oregon’s latest report on its private equity portfolio here https://bit.ly/2RbKSCj