Texas pension commits $287m to private equity

The Texas County & District Retirement System committed $287 million to private equity during the first quarter of this year, spread across mid-market funds, energy venture capital and real estate.

On the mid-market side, commitments include $45 million to HIG Middle Market LBO Fund II, which closed in February on its $1.75 billion hard-cap. HIG Middle Market is an extension of HIG’s private equity business, which focuses on lower mid-market leveraged buyouts and growth equity investments in the business services, education, healthcare and specialty manufacturing sectors, primarily in the US.

TCDRS also committed $15 million to Marlin Equity Partners’ Heritage Fund, which closed last week on $400 million after just three months of fundraising.  The fund, which had a $250 million target and was only offered to investors in Marlin's fourth flagship fund, will focus on transactions in the lower mid-market.

TCDRS’ venture capital commitments included a $100 million across five venture funds:  Accel-KKR Structured Capital Partners II; DFJ Venture X, Lightspeed Venture Partners Select; Lightspeed Venture Partners X, and The Column Group II. Texas allocated another $50 million to Carlyle Realty Partners VII, and $1.84 million to EnCap Energy Capital Fund VIII Co-Investors. 

DFJ is reported to have raised $325 million so far for the Venture X fund, which is its eleventh early stage venture fund.

TCDRS has net assets of about $23 billion as of 31 December, 2013.