Texas Employees Retirement System, Austin, disclosed $160 million in private equity and hedge fund transactions completed in November and December
Within private equity, the $40.3 billion pension fund committed $35 million to Arctos Keystone I, a fund that provides strategic partnerships to financial sponsors through growth capital and liquidity provisions managed by Arctos Partners.
ERS previously committed $35 million to Arctos Sports Partners Fund I in 2020.
As of Dec. 31, the pension fund’s actual allocation to private equity was 17.3%; the target is 16%.
Within its hedge fund asset class, ERS invested $25 million in Tenor Opportunity Master Fund, a convertible arbitrage hedge fund managed by Tenor Capital Management.
There is no record of previous investments by the pension fund with Tenor Capital.
ERS also disclosed follow-on investments of $25 million each in four other hedge funds:
- Complus Asia Macro Master Fund, a macro hedge fund managed by Complus Asset Management. Previous investments in the fund include the original $80 million investment in 2016 and an additional $25 million in 2018.
- Polymer Capital Management's market-neutral, multimanager, Asia-focused hedge fund. The pension fund originally invested $100 million in the fund in 2021.
- Glazer Enhanced Fund, a merger arbitrage hedge fund managed by Glazer Capital. ERS originally invested in the fund in 2016.
- Taiga Special Opportunities Fund, an opportunistic credit hedge fund managed by Orchard Global Asset Management. The pension fund originally invested $100 million in 2017 and an additional $25 million in 2020.
As of Dec. 31, the pension fund’s actual allocation to hedge funds was 5.3%; the target is 6%.
