Texas Teacher Retirement System, Austin, committed a total of $396 million to four alternative investment funds in March, a transaction report from the $204 billion system showed.
All four funds are run by existing TRS managers.
The largest aggregate allocation by asset class, $231 million, was split between two real estate funds.
Lone Star Residential Mortgage Fund III, managed by Lone Star Funds, was awarded $150 million for investment in special situations properties in the U.S., while $81 million was committed to Texas GCM Opportunistic RE Investments. Grosvenor Capital Management will invest the assets in the fund of one in opportunistic properties in international developed markets, confirmed Rob Maxwell, a TRS spokesman, in an email.
The system's actual allocation to real estate was 12.7% of plan assets as of Sept. 30, compared to the fund's long-term allocation of 15%, according to an investment report.
Texas Teachers also committed a total of $165 million to two private equity/venture capital funds.
The largest allocation was $100 million to BCP V Scientific Games Co-Invest U.S., a large buyout fund managed by Brookfield Asset Management. Additionally, $65 million was committed to Lightspeed Venture Partners Select V, which will seek investment in venture capital and growth equity opportunities in the U.S.
The system's actual allocation to private equity/venture capital was 17.2% as of Sept. 30 vs. a 14% long-term target.
