The $32.1 billion Texas County & District Retirement System, Austin, committed $225 million to two private equity funds and one direct-lending strategy, the system's most recent transaction report showed.
The largest commitment was $150 million for investment in Oak Street Real Estate Capital Fund V, a direct-lending fund that will seek value-added investments in single-tenant, triple leases in the U.S. The commitment is TCDRS' first to Oak Street. The system's direct-lending portfolio totaled $2.2 billion as of Sept. 30.
With the addition of the commitment to Oak Street, investment officers of the system committed a total of $317 million in 2020 to two direct-lending funds as of Feb. 4, compared to a total of $975 million to five strategies in all of 2019.
From the system's $5.1 billion private equity portfolio, $50 million was earmarked for Pamlico Capital V, a lower middle-market buyout fund that will seek investments in business and technology services, communications and health-care sectors in North America. The manager is new to TDCRS.
TCDRS committed $25 million to Water Street Healthcare Partners IV S. The fund is a companion to Water Street Healthcare Partners IV to which the system committed $43 million in 2017.
With the addition of the Pamlico Capital and Water Street Healthcare Partners' funds, Texas County & District investment officers committed a total of $195 million to four private equity funds through Feb. 4 this year. In all of 2019, TCDRS committed a total of $1.2 billion to 28 private equity and venture capital strategies managed by 27 firms, transaction reports showed.