The additional commitment was approved at the council meeting this week. Oregon first committed $525 million to KKR’s North America Fund XI in January 2011. The additional commitment was the result of “an opportunity to invest an additional amount for more favourable fee arrangements”, an OIC spokesperson said. It’s not clear exactly what those more favourable fee arrangements are, though the spokesperson confirmed the new terms only applied to the $250 million additional commitment and not to the overall total.
KKR’s North America Fund XI had collected at least $7.5 billion as of April, according to Scott Nuttall, KKR’s head of global capital and asset management group, during an earnings call. The fund is likely to close later this year, Nuttall said at the time.
Oregon’s increased commitment comes a few months after the Washington State Investment Board also authorised an additional $250 million commitment to the fund, ramping up its total exposure to Fund XI to $750 million. Washington State had previously committed $500 million to the fund.
“It’s going to be a light year for fundraising, so we saw this as a way to get additional North American exposure with a long-term partner,” a spokesperson for the Washington State Investment Board said at the time.