TRS Texas confirms $430m in commitments

Name: Teacher Retirement System of Texas
HQ: Austin, US
AUM: $201 billion
Allocation to alternatives: 34.6%

Teacher Retirement System of Texas confirmed up to $430 million in private equity commitments in May 2022, a source from the public pension told Private Equity International.

Of this total, $300 million was committed to vehicles managed by TPG, an alternative manager that holds over $120 billion in assets. TRS Texas committed $240 million to TPG Partners IX, which launched in January 2022 targeting $18.5 billion in investor commitments. The remaining $60 million was committed to TPG Healthcare Partners II, a growth equity vehicle launched alongside TPG IX with a focus on healthcare investments.

Leonard Green & Partners, a leading private equity investment firm founded in 1989, received commitments of $50 million each to Green Equity Investors IX, launched in February 2022 seeking $13.5 billion in investor capital; and Jade Equity Investors II launched in 2022 off the back of its predecessors $2.75 billion final close.

Meritech Capital Partners VIII also received a $30 million commitment. Incorporated in 1999, Meritech Capital Partners is a California-based investment firm that targets information and medical technology companies in North America.

TRS Texas currently allocates 17.3 percent of its investment portfolio to private equity, which corresponds to $34.77 billion worth of capital. The pension has a target allocation of 16 percent to private equity.

As illustrated below, TRS Texas’ recent private equity commitments have tended to focus on buyout vehicles that invest across North America.

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