Alternatives

Texas Teachers earmarks more than $900 million to alternative funds

Texas Teacher Retirement System committed a total of $935 million to seven alternative investment strategies in November, a transaction report showed.

Investment officers of the $151.2 billion fund committed $750 million to five real estate investment funds, the largest of which was $300 million to BSREP III Antlia Co-Investment. The co-investment is managed by Brookfield Asset Management Private Institutional Capital Advisors and will invest in opportunistic real estate in the U.S., the report showed.

The Austin-based pension fund previously has invested in numerous real estate and infrastructure funds managed by Brookfield Asset Management.

TRS committed a total of $250 million to a new real estate manager, Harrison Street Real Estate Capital, with $150 million earmarked for investment in Harrison Street Real Estate Partners VII-A, an opportunistic U.S. strategy. The fund also committed $100 million to HSREP VII Co-Investment 2, a companion fund, according to the transaction report.

Existing real estate manager Lionstone Partners, received commitments of $100 million each to Lionstone U.S. Value-Add Five and LVA5 Co-Investment I, a companion fund. TRS invested a total of $200 million in the previous fund and its accompanying co-investment fund in Lionstone's series of U.S. value-added real estate funds.

The teachers' fund committed $150 million to new manager Paine Schwartz Partners from its natural resources portfolio for investment in Paine Schwartz Food Chain Fund V. The fund will seek investment in sustainable U.S. food production companies.

A commitment of $35 million from the fund's private equity portfolio was made to Lightspeed SPV 1-B, a special purpose vehicle, which will invest in U.S. venture capital opportunities. The fund is managed by LS SPV Management, an affiliate of Lightspeed Venture Partners, one of TRS' existing managers.