The Oregon Investment Council is planning to commit $500 million (£330.74 million; €447.99 million) to Blackstone Capital Partners VII, according to the OIC investment officer Sam Green speaking at last week's meeting.
The OIC, a division of the Oregon State Treasury, which manages $90.86 billion in assets, is continuing an existing relationship between its Oregon Public Employees Retirement Fund and Blackstone, which currently manages over $310.45 billion in assets, according to PEI's Research & Analytics division. It previously committed $200 million to Blackstone's Fund VI in 2010 and another $200 million to the firm's Energy Partners II fund last year.
Blackstone set the target for Fund VII at $15 billion and is looking to make 25 to 40 portfolio investments valued between $300 million and $800 million each, according to the OIC report. Blackstone declined to comment.
It is offering economic incentives for the fund's first close commitments, including 8 percent preferred return and 100 percent offset in management fee, according to the OIC report.
The state treasury currently allocates $14.71 billion, or 16.2 percent, to private equity. In June 2013, the Council approved an increase to the private equity target allocation for the OPERF from 16 percent to 20 percent, which it plans to meet in three to five years. It plans to commit up to $2.4 billion in new private equity commitments this year, according to PEI data.
In February, the state committed $150 million to EnCap Energy Capital Fund X, another $150 million to RRJ Capital Master Fund and $50 million to GGV Capital Select.