Texas Municipal Retirement System, Austin, approved commitments totaling $875 million to seven alternative investment funds during a board meeting Friday for the $31.5 billion pension fund.
The largest single commitment was up to $300 million for investment in PIMCO Corporate Opportunities Fund III Onshore Feeder, confirmed Bill Wallace, the pension fund's spokesman, in an email.
TMRS committed $200 million to the earlier fund in the series, managed by Pacific Investment Management Co., a board performance report showed.
PIMCO's third opportunistic private credit fund will focus on investing in corporate debt in public and private companies in the U.S. and Europe in substrategies that include capital solutions, distressed, special situations and stressed.
The pension fund's real estate team committed a total of $325 million to three managers, with the largest commitment — up to $200 million — to Virtus Real Estate Enhanced Core, managed by Virtus Real Estate Capital, a new manager for the pension fund. The fund will invest in recession-resistant properties primarily in real estate sectors that include health care, self-storage, senior living, student housing and workforce housing in the U.S.
Existing real estate manager Berkeley Partners Management received a commitment of up to $75 million to Berkeley Partners Value Industrial Fund V, a value-added strategy that will invest in light-industrial properties in the U.S.
TMRS investment officers also committed an additional $50 million to Abacus Capital Group's Abacus Core Income Fund I for investment in U.S. multifamily residential housing. The pension fund's original commitment to the fund was $75 million, the board's performance report showed.
The TMRS investment team continued to build out the pension fund's private equity portfolio with three commitments totaling $250 million.
Insight Partners, a new manager for the system, was awarded a $100 million commitment to Insight Partners XI, a venture capital fund that seeks investment in U.S. small- to midcap growth-stage firms in sectors that include software, software-enabled services and internet services.
Existing private equity managers Altaris Capital Partners and One Rock Capital Partners each received $75 million commitments to buyout funds.
Portfolio managers of Altaris Health Partners V will focus on investment in the health-care sector in North America and western Europe with a specific focus on pharmaceuticals, medical devices and diagnostics, and provider services.
One Rock Capital Partners III seeks to acquire value-oriented control stakes in complex, middle-market businesses within "sub-sectors of the 'old economy,'" a board report showed.
