Teacher Retirement System of Texas Commits $800 Million to Funds

By David G. Barry

The Teacher Retirement System of Texas (TRS) committed just over $800 million in September, two-thirds of it going to two private equity funds and a real estate fund.

TRS’ biggest investment was $250 million to Clayton, Dubilier & Rice Fund XII, L.P. – one of three private equity funds that it backed. It also committed $150 million to Thoma Bravo Discover Fund IV, L.P. and $25 million to Distributed Global Ventures III LP. Thoma Bravo and Distributed Global are new relationships for TRS.

The $184.4 billion system’s second-biggest investment in September was $200 million to PCCP Clipper Venture II, LP, which was described as an “opportunistic” real estate fund.

The remaining $175 million was deployed into five energy, natural resources, and infrastructure (ENRI) funds. – $75 million of it going into an EIV Capital fund. TRS also put $52.6 million into a Goldman Sachs & Co. fund, $25 million into a co-investment vehicle from Energy Capital Partners Management and $24.8 million into two funds from Global Infrastructure Management, LLC.

As was presented earlier this summer at a TRS investment committee meeting, the system is looking to commit approximately $2.5 billion in 2022 to ENRI. In 2021, it deployed $1.3 billion.

For the fiscal year ended June 30, TRS posted a negative 2.3% return, beating its benchmark of negative 3.8%.