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Oregon decides against $150m commitment to Warburg Energy Fund

6 May 2014

oregonThe Oregon Investment Council has decided against making a $150m commitment to private equity firm Warburg Pincus’ energy-focused fund.

The council which manages the Oregon Public Employees Retirement Fund has refused to approve the commitment to Warburg Pincus Energy Fund due to questions over its economic terms, according to the Buyouts magazine.

Warburg Pincus Energy Fund does not offer a preferred return to LPs, while Energy & Minerals Group Fund III, which has recently picked up a $250m commitment from Oregon, offers a preferred return.

Three of the five members of the council `raised questions about fund economics and the proposed commitment was not voted on at the April 30 meeting.

“The concerns were structural, based on the return structure for LPs, and at this point it is unlikely it will be back,” a spokesman told the publication.

According to a memo from adviser TorreyCove Capital Partners, none of Warburg’s previous funds have had a preferred return and instead offered a lower-than-market management fee.

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