Oregon Investment Council Commits $1.3B Across Alternatives
The Oregon Investment Council disclosed about $1.3 billion in alternative-investment commitments spanning energy infrastructure, real estate and hedge funds, even as the state pension portfolio lagged its benchmark in the second quarter.
The council, which oversees investments for state trust funds, including the Oregon Public Employees Retirement Fund, committed $160 million to Blackstone Energy Transition Partners V. It also allocated $100 million to Cube Infrastructure Fund IV and $50 million to a Salem co-investment vehicle.
Oregon committed $200 million to LS Power Equity Partners VI and $25 million to a co-investment vehicle, according to industry reporting. The North America-focused strategy targets power generation, transmission, storage and other energy infrastructure.
Real estate commitments approved in May included $120 million for Hines Asia Property Partners, a fund targeting properties in Asia-Pacific markets, and $100 million for a Walton Street Capital strategy investing across the risk spectrum in U.S. commercial real estate debt.
The council also expanded its diversifying-strategies portfolio. Carronade Capital Management received $308 million for its flagship fund and $100 million for co-investments. Staff-discretion investments included $100 million for Marshall Wace’s MW Alpha Plus Fund II and $50 million for Voleon Composition Domestic Fund, a quantitative strategy that uses machine learning.
The commitments come as Oregon reassesses its long-term allocation. The council this week adopted new targets that reduce private equity to 19% and real estate to 10%, while establishing a 7.5% standalone credit allocation and raising real assets to 10%.
OPERF returned 3.5% in the quarter ended June 30, trailing its benchmark and most peers as its lower public-equity exposure limited participation in stock-market gains. Consultant Meketa said public equity, real assets and the opportunity portfolio led results, while private equity declined because of quarterly valuation adjustments. The fund returned more than 8% over one year, with every asset class positive.