The Oregon Investment Council voted to commit $525 million to the new Kohlberg Kravis Roberts & Co. buyout plan.
The Oregon Investment Council voted to commit $525 million to the new Kohlberg Kravis Roberts & Co. buyout plan.
$500 million will come from PERS and $25 million will come from the Common School Fund.
“It’s a good time to invest,” George Roberts, KKR co- founder, told the Oregon Investment Council during his fund- raising pitch today in Tigard, Oregon. “You can make reasonable investments in companies with good financing at not cheap prices, but at fair prices.”
U.S. pension funds, faced with as much as $3 trillion in unfunded pension liabilities, are seeking higher yields to meet their obligation. Pension plans provided about 40 percent of all leveraged buyout funds since 2005, and they may help firms rebound from the worst fundraising year since 2004, research firm Preqin said. Oregon has invested with KKR since 1978 and has gotten returns of 18 percent on average.
Read more at Bloomberg.
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