Texas County & District allocates $114 million to private equity, direct lending

Texas County & District Retirement System committed a total of $114 million to two alternative investment funds at the end of December, bringing the $25.6 billion pension fund’s alternative investment commitments and investments to an aggregate $1.72 billion in 2016.

The Austin-based pension fund committed $75 million from its private equity portfolio to EnCap Energy Capital Fund XI, managed by EnCap Investments, according to a transaction report. TCDRS also committed $39 million to Accel-KKR Credit Partners, a direct lending fund, in December.

TCDRS investment officers were kept busy in 2016 with 34 commitments or investments to alternative investment funds new to the retirement system or additional contributions to existing investments.

Allocations to private equity funds led TCDRS’ 2016 alternative investment commitments with a total of $636 million awarded to 17 new and existing funds. Direct lending commitments to five new funds totaled $339 million, while $217 million was directed to four real estate funds. The pension fund made just one commitment of $100 million to an opportunistic credit fund in 2016.

The pension fund invested a total of $430 million in seven new and existing hedge funds.