Texas Employees' Retirement System, Austin, aims to commit up to $1.45 billion to private equity strategies in the fiscal year ending Aug. 31, 2018.
Trustees of the $27.8 billion fund accepted the recommendation of investment staff to commit a total of between $600 million and $1.45 billion to private equity, excluding co-investments and funds of funds, during a meeting Tuesday.
The breakdown of the pacing plan for the 12-month period is:
- between $450 million and $700 million among nine and 14 buyout funds;
- $100 million to $300 million among two to four venture capital and growth equity funds;
- $50 million to $300 million among three to eight special situations funds; and
- zero to $150 million among up to three subordinated, senior and distressed debt funds, showed investment committee meeting documents.
Texas Employees committed a total of $428 million to six private equity funds fiscal year-to-date through Dec. 1.
By contrast, the 2017 pacing plan sought to commit between $375 million and $1.125 billion in five to 10 private equity funds, excluding co-investments and funds of funds.
"It is expected that there will continue to be a robust pipeline of quality investment opportunities over the next 12 months," private equity investment specialists wrote in the report.
As of June 30, Texas ERS had invested or committed a total of $5.265 billion to private equity excluding co-investments and funds of funds.
