Texas Municipal Retirement System, Austin, disclosed a total of $981 million in alternative fund commitments completed during the quarter ended March 31 in a report from CIO David Hunter included with materials for its upcoming board meeting Thursday.
The $36.5 billion pension fund committed $150 million each to Arrow Credit Opportunities II, a private credit fund managed by Arrow Global; buyout fund Bain Capital Insurance Fund; Excelsior Renewable Energy Fund II-B, an infrastructure fund managed by Excelsior Energy Capital that targets investments in renewable power assets such as solar and wind; and North American lower-to-middle-market energy fund Pearl Energy Investments III.
It also committed $100 million each to Arcline Capital Partners III, a middle-market industrial buyout fund managed by Arline Investment Management, and Parthenon Investors VII, a growth equity fund managed by Parthenon Capital Partners; $75 million each to lower-middle-market buyout fund Gemspring Capital Fund III and a middle-market buyout fund managed by Public Pension Capital; and $31 million to infrastructure fund MTP Zilker AV1, an energy fund managed by MTP Energy Management.
Arrow Global, Excelsior Energy, Gemspring and Pearl Energy all represent new manager relationships for the pension fund, according to Mr. Hunter's report. Previous commitments to the other managers include $120 million to Arcline Capital Partners II in 2021, $100 million to Bain Capital Credit in 2016, $50 million to MTP Climate Infrastructure Fund in 2021, $50 million to Parthenon Investors VI in 2019 and $75 million to a previous Public Pension Capital buyout fund in 2021.
Among the new commitments, the Bain Capital, energy and infrastructure commitments fall within TMRS' other public and private markets asset class.
As of March 31, the actual allocations to non-core fixed income, OPPM and private equity were 19%, 12.2% and 10.2%, respectively; their respective targets are 20%, 12% and 10%.
