Oregon commits $250m to Apollo debt fund

The Oregon Investment Council has also retained its target allocation to private equity at 16 percent.

The Oregon Investment Council (OIC) has approved a $250 million (€160 million) commitment to Apollo Credit Opportunities Fund, a debt investment vehicle managed by Apollo Management Group, according to an OIC spokesman.

The commitment follows a $1 billion investment made by the California Public Employees' Retirement System in Apollo Credit Opportunities Fund last month.

The fund will invest in senior bank debt and hung leveraged buyout loans, according to a description of the fund in CalPERS' reporting documents. Those documents also characterised the fund as a “separate managed account with CalPERS” – it was not known at press time whether CalPERS and the OIC's commitments will be co-mingled or will be managed separately.

The OIC, which manages several statewide capital pools including the $60.7 billion Oregon Public Employees Retirement System, had invested $200 million in Apollo's sixth buyout fund in 2006.

Well known for its long-standing support of private equity and its loyal relationship with buyout firm Kohlberg Kravis Roberts, the OIC has been very active in recent months in investing in private equity debt vehicles.

Earlier this month, the OIC committed $3 billion to KKR's fixed income wing in a separate managed account. The OIC is also a major limited partner in Oaktree Capital Management's $10.9 billion distressed debt fund, the largest ever distressed debt vehicle.

At its monthly meeting held yesterday, the OIC also retained an annual allocation to private equity of 16 percent.