LPs

Texas Teachers adds $313 mln to PE in May

-
Texas, state flag,
  • The $150 bln retirement system has a 13 pct target for PE
  • Hellman & Friedman, TA Associates received large commitments
  • Texas Teachers is considering a 1-2 pct increase in its PE target

Teacher Retirement System of Texas committed more than $300 million to private equity in May, investing with two large buyout firms and a co-investment opportunity.

The $150 billion retirement system committed $150 million to Hellman & Friedman’s H&F United Partners fund, and $150 million to TA Associates’ TA XIII-A fund.

It also committed $13.3 million to White Cypress Co-Investment Partners, a mid/small buyout opportunity managed by Clearlake Capital Group.

Texas Teachers has a 13.9 percent allocation to PE, with a 13 percent long-term target, and it committed $389 million to private equity funds in April. The pension made an even larger commitment to the asset class in March, committing $720 million headlined by $600 million to Blackstone’s latest megafund, and has discussed an increase to its PE allocation target.

Texas Teachers’ investment staff plans to bring an asset allocation proposal to the board, which may increase its PE allocation target by one or two percentage points.

The retirement system also committed $800 million to real assets and $500 million to infrastructure and energy.

The largest private markets commitment for the month was a $500 million commitment to AEW Capital Management’s AEW Global Investment Fund T. The pension also committed $300 million to Blackstone’s BREP Europe VI fund, $300 million to Brookfield Assets Management’s Brookfield Infrastructure Fund IV-A, and $200 million to the DC Front Range Holdings I infrastructure fund.

Action Item: Texas Teachers’ latest investment committee meeting materials: https://bit.ly/2ZBxFnO