Texas Teachers Adds to PE, Infra Bets with $500M+ in New Commitments

The Teacher Retirement System of Texas has deployed approximately $500 million in new commitments across private equity and infrastructure, reinforcing its conviction in an asset class that delivered more than 9% returns for the pension system in 2025. The latest round draws exclusively from existing manager relationships.

The largest commitment went to Leonard Green & Partners, which received a $200 million allocation to Green Equity Investors X. Launched in mid-2025, the fund targets companies across consumer, healthcare, business services, distribution, and industrial sectors.

Gridiron Capital Fund VI captured a $100 million mandate. The firm’s approach centers on operational improvement at portfolio companies, deploying internal resources alongside a network of operating partners and board-level executives. Kingswood Capital Management received two allocations, $77 million to Kingswood Capital Opportunities Fund IV, continuing a relationship that began with Fund III, and $23 million to Kingswood Capital Opportunities Small Cap Fund I, a new vehicle targeting middle-market companies with operational upside.

On the infrastructure side, Macquarie Infrastructure Partners VII received a $100 million commitment in April. Texas Teachers previously backed the fourth vintage of the series with $150 million in 2023. The fund invests across transportation, communications, waste management, utilities, and energy.

The pension’s $33.7 billion private equity portfolio is approaching its 15% interim policy target with room to grow toward a 19% ceiling. Its $16 billion ENRI program, spanning energy, natural resources, and infrastructure, returned 7.1% in 2025 and continues to expand.