OIC to establish secondaries programme with PCG Asset Management

The Council has earmarked PCG Asset Management as the manager of the $100m Customized Secondary Program.

According to an internal document, “The financial crises and economic disruptions of the last two years dramatically altered the supply-demand balance, and resultant pricing for secondary private equity partnership interests. Many high net worth individuals, endowments, foundations, family offices, and even some public and private retirement plans have, for a variety of reasons, found a need to exit some, or all, of their private equity partnership commitments. The current ‘buyer’s market’ in private equity secondaries is an attractive opportunity for the Oregon Public Employees Retirement Fund to generate incremental investment returns.”

The OIC believes confidentiality is a key factor in the programme being a success, as it believes sellers do not want to be disclosed – highlighting the perceived stigma attached to selling private equity interests on the secondary market.

The pension fund investment manager also sees the ability to transact rapidly, to assess the value of fund interests accurately, and to select a good GP that will invest the unfunded part of the commitment successfully as key.

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