Texas Retirement Unleashes $800M to Private Equity

The Texas Municipal Retirement System, which manages $39 billion in assets, announced a series of private equity fund commitments of more than $800 million.

PSG, Providence Equity Partners’ former growth capital arm, raised $125 million for its sixth flagship, according to TMRS board meeting documents that reveal the LP’s private equity obligations across 2023.

The firm is aiming for a $7 billion hard cap for Fund VI and has already met about half of that target through an August 2023 first close, according to separate documents from the San Antonio Fire and Police Pension Fund.

Other significant private equity commitments from the retirement system last year included $120 million to Altaris Health Partners VI and $100 million to both Arcline Capital Partners III and Parthenon Investor VII. Altaris also received $40 million for VI-4042, which is considered to be a co-investment fund.

Altaris’ target for the vehicle is $3 billion, with a hard cap of $3.5 billion. The firm had already secured pledges from the Orange County Employees Retirement System and the Illinois Teachers Retirement System.

Arcline Investment Management had a $4.5 billion final close for its third fund last year. In 2019, the firm launched a $1.5 billion maiden fund, the highest debut raise for a North American vehicle in almost a decade, and two years later closed a $2.75 billion sophomore fund.

Parthenon Capital also continued its strong growth, closing Fund VII at $4.5 billion last year, exceeding its $3.5 billion target.

TMRS also committed $75 million to One Rock Emerald Fund, SkyKnight Capital Fund IV, Public Pension Capital, and Gemspring Capital Fund III, according to board filings. Arctic DC Holdings secured a commitment of about $17.2 million.