Texas TRS approves $255m in commitments

The Austin-based public pension has committed $255m to private equity vehicles managed by Clearlake Capital Group and GTCR.

Institution: Teacher Retirement System of Texas
Headquarters: Austin, US
AUM: $210.5 billion
Allocation to alternatives: 34.6%

Teacher Retirement System of Texas has confirmed $255 million in commitments across three private equity vehicles, a contact at the firm informed Private Equity International.

The largest of the three is a $200 million commitment to Clearlake Capital Partners VII, alongside smaller commitments of $30 million to GTCR Strategic Growth Fund I and $25 million to GTCR (LP Inv) LP.

Clearlake Capital Group launched its seventh series in August 2021 with a $10 billion fundraising target. That target has been met and the fund is on track to be oversubscribed having attracted investment from other US public pensions, including Illinois Municipal Retirement Fund, Pennsylvania State Employees’ Retirement System and Los Angeles County Employees’ Retirement Association.

GTCR is a Chicago-based private equity firm focused on investing in growth companies in the financial services, healthcare and technology, media & telecommunications industries. It launched GTCR Strategic Growth Fund and GTCR (LP Inv) LP in 2021, with the former holding a final close in November 2021, having raised $1.6 billion following a $1.5 billion fundraising target.

Clearlake placed 22nd in Private Equity International’s annual PEI 300 ranking, with GTCR placing 44th.

Texas TRS allocates 17.3 percent of its investment portfolio to private equity against a 16 percent target, which comprises over $36.4 billion in capital.

As shown below, Texas TRS’s recent private equity commitments have tended to focus on North American vehicles with buyout or growth strategies that invest across a variety of sectors.

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