$100m Oregon commitment for Stonepeak

The Oregon Public Employees Retirement Fund (OPERF) has committed $100 million to Stonepeak Infrastructure Fund, according to the pension plan.

The Oregon Investment Council (OIC), in charge of managing OPERF, moved to invest with Stonepeak based in part on a recommendation from its pension consultant TorreyCove Capital Partners.

Oregon invested with Stonepeak as part of a $400 million private equity allocation that also included a $100 million commitment to Alvarez & Marsal Capital Partners, as well as a $75 million investment with Nordic Capital, a $75 million allocation to Pine Brook Partners, and a $50 million investment with Advent International.

Oregon PERF incorporated an infrastructure investment sleeve to its so-called alternative portfolio, created in 2011. The sleeve is 45 percent of the portfolio, which is 5 percent of the $58 billion OPERF has under management.

Oregon said its commitment to Stonepeak satisfied 25 percent to 35 percent of its target allocation to the infrastructure sleeve.

The pension plan praised Stonepeak Infrastructure Partners for its “experienced team,” noting Michael Dorrell and Trent Vichie, who co-founded Stonepeak, “helped establish” the North America infrastructure practice for Macquarie Group, and also went on to co-head infrastructure for Blackstone Group.

Dorrell and Vichie left Macquarie for Blackstone in 2008 before starting New York-headquartered Stonepeak in 2011.

OPERF also credited Stonepeak for being independently operated, rather than a “captive” fund, run by a Wall Street firm.

TorreyCove noted Stonepeak is targeting a “mid-teen” investment return, and will invest 70 percent of its capital in the US and 30 percent in Canada. Vichie declined comment.

Oregon made its maiden commitment to infrastructure in 2008, investing $200 million with Alinda Infrastructure Fund II.

Stonepeak held its first close in October on $740 million, and has $790 million in capital, according to Oregon. The fund will aim to close on $1 billion.

In addition to OPERF, Stonepeak Infrastructure Fund in 2012 secured a $250 million investment from the Washington State Investment Board (WSIB), and a $40 billion commitment from the New Mexico Educational Retirement Board (NMERB).

Stonepeak has a $400 million anchor commitment from TIAA-CREF. First Avenue Partners is its placement agent.