The $151.4 billion Texas Teacher Retirement System, Austin, committed nearly $1.6 billion to 11 private market investment strategies in June, a transaction report showed. By asset class, private equity received the highest level of commitment — $693.7 million — with $650 million allocated to four funds managed by TPG:
- TPG Partners VIII, $320 million, for investment in large U.S. buyouts.
- TPG Asia VII (A), $150 million, for investment in large Asian buyouts.
- TPG Kentucky Co-Invest, $100 million, for a U.S. small- and midcap buyout opportunity.
- TPG Healthcare Partners, $80 million, for investment in U.S. health-care-related deals.
TRS has invested in and committed to various earlier TPG funds and co-investments, including a total of $450 million to two funds in 2017.
TRS also committed €37.5 million ($43.7 million) in Austin VI, a private equity co-investment managed by Bridgepoint Advisers.
Earlier this year, the fund's investment officers committed $187 million to BP Europe VI, also managed by Bridgepoint Advisers. In prior years, it committed a total of $539 million to four private equity funds from the same manager.
Texas Teachers committed a total of $400 million to two real assets funds.
The first commitment was $250 million to a three-way joint venture — SFR JV-1 — created to acquire up to 12,000 rental homes in the U.S. The other partners are Singapore sovereign wealth fund GIC Private Ltd. and the JV's manager, Tricon Capital Group. Both entities also have committed $250 million to the venture.
The value of the portfolio is anticipated to total about $2 billion, according to a news release from Tricon. The commitment is TRS' first to Tricon.
The second commitment was $150 million to Square Mile Credit Partners II-A, a real estate credit fund focused on investment in special situations in the U.S.
TRS previously committed a total of $750 million to five funds managed by Square Mile Capital Management, including $150 million to the first fund in the firm's Credit Partners' family.
An aggregate $500 million was committed to four funds from TRS' energy, natural resources and infrastructure portfolio.
The largest allocation was $250 million to Blackstone Infrastructure Partners, managed by Blackstone Group. The pension fund previously invested in or committed to numerous real estate and private equity funds managed by Blackstone; the June commitment was TRS' first to the firm's U.S. infrastructure fund.
TRS committed $50 million to NGP Natural Resources XII, managed by NGP Energy Capital Management, for investment in the oil and natural gas production, energy midstream and oilfield services industries in North America.
The fund also committed $100 million to NGP Naboo, also a diversified North American energy-focused co-investment vehicle managed by the same company.
NGP is a new manager for TRS.
The educators' fund committed $100 million to Dewback Infrastructure, a U.S.-focused strategy managed by DCP Fund I Adviser/Digital Colony Management.
In February, TRS committed $200 million to Digital Colony Partners, a co-investment fund managed by the same company to invest in U.S. infrastructure projects.
