TMRS private equity 2022 pacing plan

The Austin-based retirement system proposes private equity plans for next year, alongside approving five new commitments.

Institution: Texas Municipal Retirement System
Headquarters: Austin, US
AUM: $34.5 billion
Allocation to Alternatives: 36.3%

Bitesize: $50 million-$100 million

Texas Municipal Retirement System has proposed its pacing plan for the following fiscal year, according to the pension fund’s latest board meeting materials.

The pacing plan suggests the pension fund is set to make modelled commitments of $900 million in 2022, with an expected range of plus or minus $300 million. TMRS anticipates the commitments to the asset class are most likely to go over the modelled commitment plan, as it is the fastest scaling asset class.

Currently, the private equity portfolio is 3.3 percentage points short of the 10 percent target size. Between the outset and end of Q3 2021, the the private equity portion of the portfolio increased from 5.3 percent (~$1.9 billion) to 6.7 percent (~$2.5 billion).

Five new commitments were approved in Q3, totalling $343.75 million. These comprised $100 million apiece to Altimeter Growth Partners Fund VI and Dragoneer Opportunities Fund VI; $75 million to Techstars Ventures 2022; $50 million to GTCR Strategic Growth Fund; and $18.75 million to a co-investment vehicle between TMRS and Updata Partners.

Illustrated below are the recent fund commitments and full investment portfolio of the $34.5 billion retirement system.

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