Real Estate Losses Didn’t Slow Texas Teachers’ Appetite for Private Markets

The Teacher Retirement System of Texas is pressing forward with its private markets buildout, committing $970 million across seven funds spanning real estate, energy and infrastructure, and private equity.

The $31 billion real estate portfolio absorbed $460 million across three mandates despite posting a 3.5% loss in 2025. BDT & MSD Real Estate Capital Partners received $200 million for a U.S. opportunistic strategy, while Berkeley Partners Management’s Amperage Industrial fund, which buys industrial real estate across more than 14 million square feet in high-growth U.S. markets, received another $200 million. Two Sigma Real Estate’s TSRE Coinvest VI picked up a $60 million commitment targeting opportunistic U.S. assets.

The energy, natural resources, and infrastructure program, which returned 14.6% in 2025, received $445 million across three commitments. Blackstone Energy Transition Management Associates V, a private equity fund focused on cleaner and more affordable energy development, received $200 million, with another $200 million going to Blackstone Supplemental Account – Bobcat, a co-investment vehicle. A $45 million commitment went to Avant Infrastructure Co-Investment Fund, a new TRS manager focused on oil and gas acquisition and development.

Rounding out the activity, TRS committed $65 million to Littlejohn Altitude Fund, a U.S.-focused buyout vehicle, against a $34 billion private equity portfolio that returned 12.2% in 2025.

The allocations come on the heels of a strong overall year for the $235 billion pension, which posted calendar gains of 15.9% in 2025. Trustees also approved an amendment allowing a 2-percentage-point increase in the allocation limit for any single external manager.