Texas Retirement Adds $258M to PE, Credit Portfolio

The Texas County & District Retirement System (TCDRS) in Austin added $258 million to two credit-focused strategies and a private equity fund over the past few weeks.

The largest commitments were in the strategic credit and distressed portfolios, which collectively amount to $4.5 billion and $1.8 billion, respectively. Through the first half of 2024, both programs increased by double digits, with annualized growth of 12.2% and 11.2%, respectively.

A $100 million commitment was made to Alcentra Structured Credit Opportunities Fund V, which is invested in collateralized loan obligations (CLO) tranches of debt securities backed by senior secured loans to U.S. and European corporates. The investment follows a $50 million mandate in 2021 in Fund IV by the $48 billion retirement system.

Another $100 million allocation was made to Monarch Alternative Capital’s Monarch Capital Partners VI in the pension fund’s distressed credit portfolio. The fund held its final closing this week, amassing over $4.7 billion and far exceeding its initial target of $3.5 billion. The fund surpassed its 2020 predecessor fund, which raised $3 billion focused on distressed and opportunistic credit investments.

A $58 million commitment was made to ShoreView Capital Partners V, which closed last month at $500 million, within the system’s private equity strategy. The firm’s strategy is to invest in established, middle-market companies with operations in North America across a wide range of industries. ShoreView structures a variety of acquisition, recapitalization and buy and build transactions, typically in family and entrepreneur-owned businesses with revenues ranging between $20 million and $200 million.