Texas ERS Expands Private Markets Portfolio

The Employees Retirement System of Texas has expanded its private markets portfolio with additional exposure to private equity, infrastructure, and private credit investments, which account for approximately 39% of the pension fund’s program.

Currently, all three asset classes are overweight in comparison to the target asset allocation, which also includes a 6% objective for hedge funds in areas where the system remains underweight.

LGT Capital Partners was granted $32 million for its LGT-Crown European Small Buyouts VI fund, which accounts for 17% or $7 billion of the $41 billion pension fund’s private equity portfolio.

An investment of $50 million was made in Igneo Infrastructure Partners’ Igneo North American Diversified Infrastructure Fund, which comprises 5.9% of the pension’s assets

Chambers Energy Capital Fund V, which is managed by Houston-based Chambers Energy Capital, received $50 million for its private credit strategy, which accounts for 3.6% of ERS’ portfolio. The commitment is in addition to the $75 million made earlier this year.