DECEMBER 9, 2013

OPERF invests $100m in new Rockpoint fund

by Andrea Waitrovich

The $64.4 billion Oregon Public Employees Retirement Fund has committed $100 million to Rockpoint Group’s recently launched $1 billion fund, Rockpoint Core Plus Real Estate Fund. The fund has a lower-risk, longer-term strategy for U.S. real estate investments than other Rockpoint funds.

With a core-plus investment mandate, the fund’s investments will be focused on stabilized commercial real estate assets with strong existing cash flows and less capital-intensive business plans than typically found within Rockpoint’s opportunistic investment funds. The fund will primarily focus on equity investments in office and multifamily assets within the United States, although debt origination, preferred equity or debt acquisitions may be included, as well as, to a lesser extent, other stabilized institutional-quality assets.

OPERF has invested in each Rockpoint fund offering since its formation in 2003, committing approximately $695 million. Prior to that, OPERF also invested in the Westbrook I–IV funds series, which was also led by senior members of the current Rockpoint team. The fund launch follows the firm’s $1.95 billion final close of its Rockpoint Real Estate Fund IV.

To date, OPERF has $7.7 billion invested in real estate with a 12.5 percent target. The pension plan has a diverse portfolio; approximately $2.7 billion of its capital is invested in opportunistic investments. Its direct core portfolio has a value of $2.1 billion, and its value-added portfolio totals $1.4 billion.

In addition, OPERF invested $100 million in LS Power Equity Partners III for the OPERF Alternatives Portfolio, which has a 20 percent to 30 percent target allocation to infrastructure. The fund focuses on large and complex situations in the North American power and energy infrastructure sectors.

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