The Teacher Retirement System of Texas invested about $2.4 billion in private equity in 2013, including $830 million in primary fund commitments and $95 million to emerging managers, according to a summary of the investment activity from the pension system.
The system targeted a full range of managers last year, including buyout and venture capital and both mid-market and large-cap firms. The roughly $126.1 billion system’s private equity portfolio stood at about $13.4 billion as of Dec. 31, 2013, or 11 percent of the total fund (at the end of 2013 value of $124 billion).
The five primary commitments, totaling $830 million, went to Triton Fund IV, which closed on 3.3 billion euros ($4.5 billion) last year; Insight Venture Partners VIII, which closed last year on $2.57 billion; Crestview Capital Partners Fund III, which launched last year targeting $3 billion; Carlyle Partners VI, which closed in November on $13 billion and CCMP Capital Investors III, which has been targeting $3.5 billion since last year. The system’s summary did not break out each individual fund commitment.
The system also committed $1.2 billion to four funds in its strategic account program, which includes two partners, Kohlberg Kravis Roberts & Co and Apollo Global Management. It was not clear exactly which funds received commitments. Texas Teachers’ also committed $230 million to two principal investments, according to the summary.
Finally, the system pledged a total of $95 million to five emerging managers (again not breaking out individual commitments): New Heritage Capital Fund, targeting $175 million; ICV Partners III, which closed in May on $400 million; Trive Capital Fund I, which closed on $300 million last year; the $150 million Blue Sage Capital II and Blue Sea Capital I, which closed on $327 million this month.
The system has been through some changes since last year. Its head of private equity, Richard Hall, left the institution to head up private equity and venture capital at the Harvard Management Company. The program is now being led by Neil Randall, senior director of private equity.
Hall told Buyouts last year the system could target between $2 billion and $3 billion in 2014 to maintain its target allocation. It was not clear if the system will continue to pursue that commitment pace.
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