Texas ERS makes $100m commitment to Hellman & Friedman

The $21bn pension committed $100m to Hellman & Friedman’s seventh fund as it looks to invest $1bn in private equity this year.

The Employees Retirement System of Texas has committed $100 million to Hellman & Friedman’s seventh fund, which is reportedly targeting $8 billion and has so far raised $6 billion. 

The $21 billion pension made the commitment in February and released the information after a public records request. The pension also committed $100 million to Carlyle’s fifth buyout fund, but declined to provide the date the commitment was made. Carlyle V closed on $13.7 billion earlier this year.

Texas ERS has been building its private equity programme since its launch in 2007. The pension plans to allocate $1 billion to private equity investments this year as it works to meet its 8 percent target to the asset class. Texas ERS raised the target from 7 percent in August.

Altius Associates is working with Texas ERS on building its portfolio, with the pension's actual allocation to private equity hovering under 1 percent.

The pension is looking to invest in venture capital, buyout and special situation funds, including subordinated and distressed debt funds. The pension also has invested with the Texas Growth Fund, a venture firm, New Mountain Partners, Advent International and Brazos Private Equity Partners.