Oregon State Treasury is betting big on technology buyouts. The $35 billion pension recently committed $100 million to Thomas Weisel Partners LLC and a total of $350 million to two Texas Pacific Group funds which will jointly target buyouts in the tech sector, among other sectors.
Thomas Weisel has set a cap of more than $1 billion for its debut fund, said a source close to the firm. Investors in the fund have said they expect it to benefit from contacts it has with the tech investment banking side of Thomas Weisel. The fund will make growth investments in tech companies, as well as look for leveraged buyout opportunities in that sector. Other investors to the fund include the California Public Employees’ Retirement System (CalPERS), which committed $100 million, and the Washington State Investment Board, which committed $125 million.
Oregon also committed $300 million and $50 million, respectively, to TPG’s third buyout fund and to T3 Partners, a technology buyout fund with a target of $1 billion that will be able to draw on the capital of the main buyout fund on a deal-by-deal basis (BUYOUTS Sept. 27, p. 1). The main fund has a target of $2.5 billion.
Jay Fewell, Oregon’s senior investment officer, could not be reached for comment.