The Oregon Investment Council has asked Wesley Edens, principal and co-chairman of Fortress Investment Group, to review the firm’s fee structures.
Markstone does not expect the criminal case against its former chairman Elliott Broidy to have an effect on the ‘value of investors’ interests in the partnership’.
LPs have voted to slash the fund to €2.7bn following the departure of the firm’s chief executive in September.
PCG Asset Management would run the programme, which would target original commitments of between $5m and $20m.
The UK firm’s LP advisory board has moved to terminate the firm’s €3bn fund, which would keep €100m to help manage its sole portfolio company.
The board, which manages the state’s $113bn pension, also is considering investments in Oaktree and Bayview.
The separate account will target investments in funds with commitments of up to $1bn that focus on international markets.
In an unusual proposition, the Chinese sovereign wealth fund is offering liquidity to LPs in the €11.2bn Apax Europe VII.
In addition to poor performance, poor alignment of interests and corporate governance will make new commitments a harder sell for LPs, according to a survey of LPs from Coller Capital.
Hudson Clean Energy Partners has scored some big commitments from pensions, including $400m from Danish pension ATP.