Texas Teachers Allocates $250M to Real Estate, VC Funds

The Texas Teachers Retirement System has committed up to $250 million to two real estate vehicles and one venture capital fund.

Davis Investment Ventures Fund V-A, a real estate-focused value-add investment vehicle, received $100 million from the $187 billion pension system. Davis is reportedly targeting $950 million.

It started fundraising in 2022 and had raised more than $342 million by August of that year. By December 2023, the fund had nearly doubled to $508 million.

The Texas pension committed an additional $100 million to Fund V’s co-investment sidecar.

New Enterprise Associates (NEA), a venture capital firm, secured $50 million for its RP special purpose vehicle (SPV) fund, which has garnered about $245 million to date. The firm has not yet revealed additional information about the fund, although it typically commits the entire capital to a single company.

Texas Teachers has previously committed $90 million to NEA 18 Venture Growth Equity and New Enterprise Associates 18 in 2022.

Both funds closed in January 2023 after raising a combined $6.2 billion to support seed to late-stage startups in enterprise and consumer technology, digital health, and life sciences.