Oregon State Treasury commits $600m to Oaktree and TPG

The system has re-upped its relationships with fund managers.

Institution: Oregon State Treasury
Headquarters: Salem, United States
AUM: $74.05 billion
Allocation to alternatives: 37.5%

Oregon State Treasury invested up to $600 million in two private equity funds in June, according to the system’s September board meeting.

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Highlights from Oregon State Treasury’s September 2020 board meeting:

  • Committed $350 million to Oaktree Opportunities Fund XI, according to meeting notes. The system has previously committed to Oaktree funds, such as $75 million to Oaktree Opportunities Fund IX and $50 million to Fund X.
  • Pledged up to $250 million to TPG Growth V. Oregon Treasury has a long relationship with TPG, having committed $475 million to its previous three Growth funds. Oregon Treasury invested up to $75 million in TPG Growth II and $200 million each to TPG Growth III and IV, according to PEI data.
  • Oregon dedicates the largest proportion of its investment portfolio to private equity, which stood at 22.9 percent, exceeding its 17.5 percent target, as of June 2020.
  • The private equity asset class is worth $16.9 billion, which is Oregon’s largest.
  • The system’s private equity portfolio has an annualized return of 11.83 percent net of fees over the last decade, according to board meeting notes.

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Rex Kim is Oregon’s Chief Investment Officer. He took over the position in April 2020 after former CIO John Skjervem stepped down from the position. Prior to his role as CIO, Kim was a senior consultant with Multnomah Group and managing director at Tallwoods Partners, according to LinkedIn.

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