(June 1, 2012) — Kohlberg Kravis Roberts & Co. (KKR) has won a $225 million commitment from the Oregon Investment Council for the investment firm’s buyout fund investing in Asia.
KKR manages a total of nearly $3 billion, or 6%, of Oregon’s $57 billion in pension fund investments. The council, which manages assets for the Oregon Public Employees Retirement Fund and Oregon’s Common School Fund, is committing $6 billion for KKR Asian Fund II LP to invest across Asia.
Oregon’s pension, with $58.4 billion in assets as of April 30, was an investor in the first Asia fund operated by KKR, which has posted net returns of 19% in the last roughly three decades.
Private equity investments have been the most profitable sector in Oregon’s investment portfolio, dating back to the state’s first private equity commitment to KKR in 1981, Oregon State Treasurer Ted Wheeler said.
Commenting on the new private equity commitment, Wheeler stated that the commitments into private equity have succeeded in reducing the risk of losses while protecting the public pension’s portfolio over time.
Under the plan approved by the Oregon Investment Council, the Oregon Public Employees Retirement Fund has pledged $200 million while Oregon’s Common School Fund is investing $25 million.
“The Oregon Investment Council is looking for the best opportunities for Oregon, no matter where they are, to benefit Oregonians,” said Council Chairman Keith Larson.