Council also asks Legislature to approve reforms that will allow for better oversight of investment risk
The Oregon Investment Council approved a series of commitments worth as much as $950 million in an effort to maintain strong performance of the
At the same time, Council members also publicly asked the Oregon Legislature to approve a new blueprint that will allow the Council to better manage investment risk and reduce costs, at a time when the portfolio is growing increasingly global and complex. The Investment Modernization and Cost Reduction Act of 2013, introduced as Senate Bill 120, would convert the council into a semi-public corporation with more oversight authority and is awaiting action in
The commitments approved were:
- $300 million to Apollo Management LP for the Apollo Investment Fund VIII, a private equity fund that will make equity and debt investments in large corporate finance, targeted primarily at domestic opportunities.
has invested in two Apollo funds previously. Oregon
- As much as $400 million to Lone Star Funds for Lone Star Fund VIII, a real estate fund that will invest in financial companies, distressed debt and distressed real estate. Lone Star is the best-performing manager in
Oregon’s real estate portfolio, and previous investments with the manager have yielded more than $1 billion in returns to the Oregon Public Employees Retirement Fund.
- $250 million to Blackstone Tactical Opportunities to create a fund that will invest in deals that are buffered from market fluctuations yet typically struggle to obtain traditional financing, such as smaller buyouts, financial institution breakups, re-insurance, and improving freight mobility. The new fund will be part of
Oregon’s opportunities portfolio.
The new commitments are all with high-performing private sector investors whose yields have helped
At the same time, the new investments increase
The Council also noted the dismissal of a recent $1 billion lawsuit filed against the State and Oregon Investment Council in connection with Lone Star Funds. While the case was thrown out by a
He called the suit “frivolous, shameful and lacking merit.”
The Council also twelcomed new appointee Rukaiyah Adams, the director of the capital markets investment group at The Standard in
Adams was the Chief Operating Officer and Director of Investments at IAM Asset Management. Adams was involved in the 2008 U.S. Presidential election as a voter rights lawyer for Counsel for Change, the Obama campaign’s legal team. She serves on the board of Portland Center Stage and the finance committee of Planned Parenthood, Columbia-Willamette Valley. Adams holds a BA from Carleton College, a JD from Stanford University and an MBA from Stanford University.
The Oregon State Treasury protects public assets and saves Oregonians money through its investment, banking, and debt management functions. State investment policies are overseen by the Oregon Investment Council. The State Treasury also promotes public outreach and education to help Oregonians learn strategies to save money, invest for college and make smart financial choices. You can track Treasury-related news on Twitter at @OregonTreasury.