Washington kicks off 2015 with $1.25 bln of PE commitments

  • Oaktree gets biggest slug – $600 mln for two funds
  • System commits $350 mln to TPG, $150 mln to Francisco
  • Oaktree targets $10 bln for distressed funds

The Washington State Investment Board approved up to $1.25 billion to private equity funds at its Jan. 15 meeting, including as much as $600 million to a pair of Oaktree Capital Management funds.

Oaktree is marketing its 10th distressed debt fund, Oaktree Opportunities Fund X, alongside a parallel fund called Oaktree Opportunities Fund Xb. In September, Bloomberg reported the firm was targeting $10 billion for its latest distressed debt pool.

Washington committed $200 million, plus fees and expenses, to Oaktree Opportunities Fund X and $400 million plus fees and expenses to Fund Xb, spokeswoman Liz Mendizabal said via email.

The $103.6 billion retirement system has committed roughly $1.4 billion to previous Oaktree opportunities funds since 1994, Mendizabal said. Washington’s $400 million commitment to Oaktree Opportunities Fund IX netted 14.8 percent through June 30, according to state documents. Its commitments to Opportunities Fund VIII and Fund VIIIb netted 13 percent and 12.5 percent, respectively.

In addition to its commitments to Oaktree, Washington re-upped $300 million to TPG Growth III, a growth vehicle targeting $3 billion. The retirement system committed $200 million to TPG Capital’s previous growth fund in 2011, which had netted a 32.9 percent IRR as of June 30.

Washington committed up to $200 million to Insight Venture Partners, allocating $150 million to the firm’s ninth flagship fund and $50 million to a co-investment fund.

The retirement system also approved up to $150 million to Francisco Partners IV. The commitment is Washington’s first with Francisco Partners since 2000, when it invested $60 million to the firm’s debut fund. That investment netted 4.98 percent through June 30.

Washington held a 23 percent allocation to private equity as of Sept. 30, according to a quarterly investment report. The portfolio was valued at roughly $18 billion.