Texas Municipal Retirement System, Austin, committed or invested a total of $755 million with 12 alternatives managers, including its first private equity commitments, pending successful contract negotiations, spokesman Bill Wallace said in an e-mail.
In private equity, the $25 billion pension fund committed to six funds:
- $75 million to TSSP Adjacent Opportunities Partners (B), a high-yield special situations fund managed by TPG;
- $65 million to Carlyle Energy Mezzanine Opportunities Fund II, managed by Carlyle Group;
- $60 million to H.I.G. Bayside Loan Opportunity Fund IV, a distressed debt fund managed by H.I.G. Capital;
- $50 million to Searchlight Capital II, a buyout fund managed by Searchlight Capital Partners;
- $50 million to Harvest Partners VII, a buyout fund that targets middle-market North American-based companies; and
- $50 million to Tritium I, a buyout fund managed by Tritium Partners.
The pension fund has a 5% target allocation to private equity.
In absolute return, the pension fund invested:
- $75 million in Alyeska Fund, market-neutral fundamental equity fund managed by Alyeska Investment Group;
- $75 million in Graticule Asia Macro Fund, a global macro hedge fund managed by Graticule Asset Management Asia;
- $75 million in Varde Investment Partners, a hedge fund managed by Varde Partners;
- $60 million in Myriad Opportunities U.S. Fund, a multistrategy, opportunistic hedge fund managed by Myriad Asset Management;
- $60 million in Roystone Capital Partners, an event-driven hedge fund managed by Roystone Capital Management; and
- $60 million in Southpoint Qualified Fund, a long/short equity fund managed by Southpoint Capital Advisors.
In August, the pension fund raised its absolute-return target five percentage points to 10%.
