Searches and Hires

Texas Employees slates $467 million for alternatives

Texas Employees Retirement System committed a total of $467 million to nine alternative investment funds in September, a transaction report showed.

The largest commitment by the $27 billion pension fund in the month was $100 million to Latitude Management Real Estate Capital IV, a private real estate investment trust that will focus investment in U.S. real estate loans. The commitment is ERS' first to the fund's manager, Latitude Management Real Estate Investors.

The Austin-based pension fund made a second real estate commitment — $10 million — for a co-investment run by an unnamed manager. As a matter of policy, ERS does not identify co-investment managers.

In private equity, ERS committed $50 million to Frontier Capital V for investment in growth companies in U.S. technology and business services sectors. The pension fund committed $60 million to Frontier Capital IV in April 2015.

Commitments of $15 million and $17 million, respectively, were earmarked for two private equity co-investment funds run by unnamed firms.

The fund made follow-on commitments to four private equity funds:

  • Castlelake V, $50 million, in addition to an allocation of the same size made in August 2017;
  • Carlyle Global Financial Services Partners III, managed by Carlyle Group, $75 million, on top of a $100 commitment made in August 2017;
  • Landmark Equity Partners XVI and Landmark Co-Invest II, both managed by Landmark Partners, $87.5 million and $62.5 million, respectively, in addition to commitments of the same size made to each fund in December 2016.

ERS allocated $100 million to each of the two prior Castlelake funds in the manager's fund series in September 2015 and February 2014. The pension fund also has made commitments to numerous Carlyle Group funds in a variety of asset classes.