West Coast Pensions Commit $1 Billion to PE

WISB, Oregon Investment Council, and SFERS make strong showing in private equity and private market commitments in February.
Reported by Randy Diamond

Three major western US pension plans have made more than $1 billion in private equity and private market commitments combined in the last month, documents and interviews show.

The biggest commitments came from the $128.8 billion Washington State Investment Board (WISB) in Olympia, Washington. It committed approximately $550 million to a private equity fund and a global infrastructure fund at its meeting on February 15, said spokeswoman Trish Day in an email to CIO.

A commitment of up to AU$390 million (approximately US$300 million) was made to a private equity fund being raised by BGH Capital Fund I, L.P. The buyout fund is focusing on middle-market transactions in Australia and New Zealand. BGH Capital is based in Melbourne, Australia.

WISB also committed up to $250 million at the February meeting to ISQ Global Infrastructure Fund II, L.P. The infrastructure fund is managed by I Squared Capital Advisors in New York, WISB has approximately $20 billion in private equity investments.

The Oregon Investment Council, which invests for the approximately $77 billion Oregon Public Employees Retirement Fund, committed €300 million (US$367 million) at its February 1 meeting to Bridgeport VI, LP, show investment council documents.

The private equity buyout fund is managed by Bridgeport Advisors Limited, a subsidiary of National Westminster Bank, a large UK bank. The buyout fund focuses on middle-market companies in Europe.

A memorandum by the investment council’s private equity advisor, TorreyCove Capital Partners, dated January 24 said, “a new commitment to the fund would be allocated 100% to the Corporate Finance investment subsector and will further be characterized as an international investment.” The Oregon public fund has investments in private equity totaling around $14.6 billion.

The third pension fund, the $24.6 billion San Francisco Employees’ Retirement System (SFERS), committed up to $225 million to four private-market funds and one sidecar vehicle, show documents presented at the board’s meeting on February 14.

The actual commitments took place in closed session at board meetings for the retirement system between November 2017 and January 2018, but were not publicly released until the February meeting.

At the meeting on November 8, 2017, SFERS committed up to $50 million to OrbiMed Private Investments, VII, LP. The venture capital fund is run by OrbiMed Advisors LLC.

The next commitment occurred at the meeting on December 13, 2017, when the board approved an investment of up to $75 million to be invested between Battery Ventures XII and Battery Ventures XII sidecar fund, LP. The venture capital fund and sidecar vehicle are managed by private equity firm Battery Ventures.

The SFERS board approved at the meeting on January 10 a commitment of up to $50 million in BroadRiver III, LP. The investment is classified as a specialty finance investment within SFERS private credit portfolio. The fund is managed by BroadRiver Asset Management, L.P.

Also at the January 10 meeting, the board approved a commitment of up to $50 million in Patria-Private Equity Fund VI, LP. The buyout fund is managed by Patria Investimentos, a firm based in São Paulo, Brazil. The firm operates in partnership with Blackstone, the US private equity giant. SFERS has a $3.6 billion private equity portfolio.