Texas Teacher Retirement System, Austin, hired Hamilton Lane Advisors as the $105.4 billion system's sole private equity consultant, fund spokesman Howard Goldman confirmed in an e-mailed response to questions.
As part of the contract renewal of the fund's five existing consultants, investment staff were directed by trustees at a June 16 board meeting to choose either Hamilton Lane or Altius Associates to advise on TRS' approximately $7 billion private equity portfolio.
Texas Teachers' staff has been working with both consultants for the past several years to expand the fund's private equity program, said Mr. Goldman in his e-mail.
That process “required identification and selection of more than 50 global relationships. Now that this phase is essentially complete, TRS is consolidating those relationships into a `best-in-class' network. This will enable TRS to become more strategic with that smaller core group,” Mr. Goldman wrote.
Mr. Goldman stressed in his message that Altius Associates provided “outstanding service” and that the firm's termination “is simply a reflection that our period for rapidly increasing (general partner) relationships has come to a successful end.”
TRS officials have announced that they intend to commit an additional $1.5 billion to private equity this year and a combined $700 million over the next two years to emerging private equity and real asset managers.