Texas Teachers commits $460m in Q1

The public retirement system made four commitments during the quarter and is on track to reach its private equity goals for the year.

The Teacher Retirement System of Texas committed about $460 million across four commitments during the first quarter, according to a spokesperson from the system. The pension fund is comfortably on track to reach its stated 2013 commitment pace, the spokesperson added. 

Texas Teachers’ goal is to complete up to $3 billion of commitments in 2013, according the system’s investment management division presentation, which was shared earlier this month. Texas Teachers’ had allocated 12 percent of its $117.5 billion assets to private equity, as of 17 April, according to its website. 

First quarter commitments include $150 million each to Apollo Credit Opportunity Fund III and to Insight Venture Partners VIII, as well as $15 million to Spire Capital Partners III and €112 million to Triton’s fourth vehicle, according to the spokesperson.

In January, Texas Teachers’ closed its commitment to Apollo, which is targeting $750 million for its fund, according to documents filed with the US Securities and Exchange Commission.

In May, Insight Venture closed its eighth fund on $2.7 billion, above its $2.4 billion target, Private Equity International disclosed.  The fund, which was in the market for only three months,  reached its target before it received commitments from a group of smaller investors, according to Insight co-founder and managing director Jeff Horing. As of 29 May, no capital had been deployed from the fund, PEI wrote.

Spire Capital’s Fund III had raised $76.3 million as of 12 April, after Texas Teachers’ closed its commitment in March, according to the SEC. 

The following month, the pension fund pledged €112 million, or about $146 million, to Triton’s fourth vehicle, which closed later in May. Fund IV raised about €3.3 billion, above its €2.4 billion target, PEI previously reported. Northern European-based Triton is injecting a 3 percent GP commitment to the fund. Other commitments to Triton’s fund included $100 million from Pennsylvania Public School Employees’ Retirement System, PEI wrote.

Texas Teachers’ has $13.4 billion of private equity assets under management as of 31 December, according to the presentation. Its private equity division is headed by managing director Rich Hall

The division aims to allocate 55 percent of its private equity commitments to domestic funds, 30 percent to internationally developed funds and 15 percent to international emerging funds, according to the presentation. The system’s actual allocations are 75 percent, 22 percent and 3 percent respectively. 

Texas Teachers intends to commit more to buyout funds, followed by growth equity and venture capital and lastly credit and special situation funds, according to its investment plan. 

Other priorities for 2013 include evaluating foreign currency exposure risk and strengthening its relationships with managers, the presentation read.