Oregon Pension considers tail-end stake sale

Private equity represented 20.9 percent of the pension’s investments on 30 September 2015, above its target allocation of 17.5 percent.

The Oregon Public Employees Retirement Fund is considering selling its stakes in pre-crisis vintage funds as part of a strategy to manage its maturing portfolio, Secondaries Investor reports.

The Oregon Investment Council (OIC), which invests on behalf of the $68.7 billion pension, said the end of life funds it holds are becoming an increasing burden and that it would consider using the secondaries market to dispose of stakes this year, according to its 2016 Private Equity Annual Plan from 3 February.

“This maturing portfolio is becoming a monitoring challenge as the pre-crisis funds face weak performance and elongated holding periods leading to complex fund restructurings,” the document noted. “Staff will look for secondary and advisory solutions to create additional leverage and allow for more effective monitoring.”

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