The Oregon Investment Council, which manages $65 billion in pension funds, has committed $100 million to WL Ross’ Recovery Fund V, which is targeting $4 billion.
Fund V will continue the strategy employed by WLR’s previous four recovery funds, focusing on control investments in a number of sectors, including healthcare, energy, metals and mining, transportation equipment and services, banking and financial services.
The fund anticipates having an average investment size of $100 million to $200 million, and will invest primarily in US-based companies, with the ability to invest up to 50 percent of capital in companies based outside of the country. While Fund V has a target size of $4 billion, the firm has yet to set a hard cap.
Fund V was expected to hold a first close by the end of October, but it is unclear whether the fund has done so yet. WLR anticipates holding a final close six months after the initial close. A firm spokesperson declined to comment on the status of the fund.
Although the commitment from Oregon has been approved, it is subject to further negotiation regarding enhancing key-man protection and improving governance rights, particularly with respect to no-fault divorce rights.
Oregon invested $200 million in WLR’s Recovery Fund IV in 2007, and is reducing its current commitment to Fund V “based solely on the need to manage [the pension’s] overall private equity allocation”, the pension said.
Oregon also cut its re-up with Centerbridge Partners in half this week, committing $100 million to the firm’s $3.75 billion second fund. Oregon committed $200 million to the firm’s $3 billion debut fund, which closed in 2006.