Searches and Hires

Texas County & District commits $45 million to venture capital

Texas County & District Retirement System, Austin, committed $45 million to Institutional Venture Partners XVI, a transaction report from the $27 billion fund showed.

The fund concentrates on venture capital investments in U.S. companies in sectors including technology, IT infrastructure, Internet, gaming, consumer services and telecommunications.

The pension fund committed $40 million in 2015 to the 15th fund in the series managed by Institutional Venture Partners.

The IVP commitment is the fund's 17th to private equity and venture capital funds year-to-date through Sept. 20 for a total of $799 million, according to the report.

Separately, the pension fund reported net returns higher than those of its policy benchmark in every period ended June 30, the most recent investment performance report showed.

For the one-year time frame, it returned 12.8% (benchmark, 12.2%); three years, 4.6% (3.8%); five years, 8.6% (7.2%); 10 years, 4.9% (4.1%); 15 years, 7.3% (6.6%); 20 years, 7.2% (6.3%); and 30 years, 8.2% (7.1%). Multiyear returns are annualized. The fund returned -1.55% in the year ended June 30, 2016.

TCDRS' asset allocation as of June 30 was 38.7% broad equity, with a breakdown of 17.7% to U.S. equities, 10.8% international developed markets equities, 8% emerging market equities, 2.2% and global equity.

The allocation to hedge funds was 22.5%; private equity, 11.6%; investment-grade bonds, 4.6%; and cash and cash equivalents, 1.7%. The high-yield strategy bucket totaled 11.4% of plan assets, with 6.2% in opportunistic credit, 2.4% direct lending, 1.9% distressed debt and 0.9% high-yield bonds.

About 9.5% of plan assets was allocated to real assets, with 3% invested in real estate investment trusts, 2.7% master limited partnerships,2.2% private real estate,0.9% Treasury inflation-protected securities and 0.7% commodities.