Texas Municipal Retirement System, Austin, committed a total of up to $725 million to five alternative investment managers at a board meeting Wednesday, confirmed Bill Wallace, a spokesman for the $26.8 billion fund, in an email.
Three managers split a total commitment of up to $525 million from the plan's $2.4 billion real return portfolio.
Chickasaw Capital Management was allotted up to $250 million for investment in an energy-oriented master limited partnership. The allocation is Texas Municipal's first to the manager.
Up to $150 million was committed to Stonepeak Infrastructure Partners III for investment in sectors including telecommunications, water, midstream, transportation, renewables and utilities. Stonepeak Infrastructure Partners is another new manager for the fund.
Magnetar Financial received a commitment of up to $125 million for its MTP Energy Management Fund. Texas Municipal committed $100 million in 2015 to a previous Magnetar energy-oriented strategy.
With the addition of these three commitments, the pension fund committed a total of $895 million to seven investment strategies. The plan's 2017 investment pacing plan for the real return asset class is between $600 million and $1 billion, meeting documents showed.
Two real estate funds each received commitments of up to $100 million from the fund's $2.2 billion real estate portfolio: TPG Real Estate Partners III and Madison Realty Capital Debt Fund IV.
TMRS committed $100 million in 2015 to the previous fund in TPG's series of opportunistic real estate funds. Madison Realty Capital is a new manager for the fund.
With these additions TMRS committed a total of up to $300 million to four real estate managers this year.
The real estate pacing plan for the fund is between $200 million and $400 million in 2017.