The $196.7 billion Texas Teacher Retirement System, Austin, committed a total of $886 million to nine alternative investment funds run by eight managers in December, a transaction report showed.
By asset class, the largest aggregate commitment was $338 million from the system's $25.1 billion real estate portfolio to three existing managers.
The system's real estate team committed $250 million to Apollo European Principal Finance Fund IV (Dollar A), which will seek out opportunistic real estate in international developed countries. The fund is managed by Apollo Global Management's European Principal Finance unit.
Additionally, Pennybacker Capital received a $50 million commitment for investment in Pennybacker Income & Growth, a value-added U.S.-focused real estate fund, and DivcoWest Real Estate Services was awarded a $38 million allocation to Divco DevCo Assembly Row, a club deal with a small number of institutional limited partners, said Rob Maxwell, a TRS spokesman, in an email. The DivcoWest fund will invest in opportunistic real estate in the U.S.
From the fund's $33.7 billion private equity portfolio, TRS committed a total of $278 million to four strategies managed by three existing firms.
The largest private equity allocation was €100 million ($113 million) to PAI Partners VIII, which will seek small- to midsized buyout deals in international developed markets.
A total of $90 million was split evenly between venture capital manager New Enterprise Associates' NEA 18 Venture Growth Equity and New Enterprise Associates 18. Both funds will target growth equity investment opportunities in the U.S.
TRS also committed $75 million to First Reserve Refuel Fund, a co-investment, which will invest in small- to midsized buyout deals in the U.S.
Finally, investment officers running the system's $9.9 billion energy, natural resources and infrastructure portfolio committed a total of $270 million to two infrastructure funds in December.
The largest commitment was €150 million to InfraVia European Fund V, managed by InfraVia Capital Partners, a new firm for TRS. The fund's portfolio managers invest in value-added opportunities in international developed markets.
Existing manager Oaktree Capital Management received a $100 million commitment to Oaktree Power Opportunities Fund VI, which will seek opportunistic infrastructure acquisitions in the U.S.
