LPs

Texas TRS commits more to KKR, Apollo

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Texas Permanent School Fund, Neuberger Berman,, pension fund, private equity
The Texas state flag. leekris/iStock/Getty Images
  • $150 bln system commits $412 mln to PE
  • Apollo, KKR each manage $4 bln separate accounts
  • KKR got commitments in real assets and infra

Teacher Retirement System of Texas committed nearly $1.9 billion to private markets in December, including additional allocations for KKR and Apollo, which run large separate accounts for the pension.

For the month, Texas TRS committed $985 million to real-assets strategies, $425 million to energy, natural resources and infrastructure strategies, and $412 million to PE.

In private equity, the $150 billion system committed $225 million to KKR’s Alamo fund and $162 million to Apollo’s AP Highlands Co-Invest fund, as well as $25 million to Crestview’s Crestview III ETS Co-Investors fund, a spokesman said.

Texas TRS has allocated about $4 billion each to Apollo and KKR through strategic partnership accounts, and also commits to co-investment accounts with both.

All three new commitments will target large buyouts, with KKR and Crestview focusing on U.S. companies and Apollo focused on international developed markets.

The retirement system has a 13 percent allocation target for private equity.

KKR also took home commitments in other private asset classes: Texas TRS committed $25 million to KKR for an international infrastructure strategy and $13.9 million for a real-assets strategy.

Action Item: Find out more about Texas TRS investments here https://bit.ly/2C9l6VI