Searches and Hires

Texas Teachers allocates $1.9 billion to 12 strategies

Updated with correction

Texas Teachers Retirement System, Austin, committed a total of $1.87 billion to 12 private market investment strategies managed by existing managers, a transaction report showed.

The biggest move by investment officers of the Austin-based fund in December was to real estate, earmarking a total of $1.034 billion to six strategies from the $153 billion fund.

International developed markets real estate strategies received an aggregate $599 million with the largest single commitment — $300 million — going to Blackstone Real Estate Partners IX, an opportunistic fund managed by Blackstone Group.

EQT Fund Management received two commitments to opportunistic real estate funds focused on investment in international developed markets with €150 million ($171 million) going to EQT's Co-Invest Platform (No. 1) SCSP and €100 million promised to EQT Real Estate II (No.2) SCSP.

TRS fund managers also allocated $14 million to Alamo for investment in an opportunistic real estate separate account, managed by KKR & Co., for investment in international developed markets.

The Alamo fund is a limited partnership agreement between KKR and TRS that will invest in various private market strategies, said Rob Maxwell, a spokesman for the teachers' pension plan.

In U.S. real estate, TRS committed $250 million to Principal Strategic Opportunity Fund III, an opportunistic fund managed by Principal Real Estate Investors.

Brookfield Asset Management received a $185 million commitment to Slopes Investor. Mr. Maxwell said for confidentiality reasons, he could not comment on whether the mandate is to a separately managed or commingled fund.

TRS investment officials also focused on commitments to international developed market infrastructure strategies from the fund's energy, natural resources and infrastructure portfolio.

Officials earmarked $200 million to EQT Infrastructure IV (No. 2) USD SCSp and $25 million to KKR's Alamo fund.

From the same portfolio, $200 million was committed to First Reserve's FR BR Midstream diversified energy portfolio for investments in the U.S.

From the fund's private equity portfolio, the KKR Alamo fund received a commitment of $225 million for investment in large buyout deals in the U.S. and a $25 million commitment was set aside Crestview III ETS Co-Investors, a co-investment fund managed by Crestview Partners focused on large U.S. buyouts.

Apollo Global Management received a $162 million commitment to AP Highlands Co-Invest for investment in large buyout opportunities in international developed markets.