Texas Teachers Allocates $155M to Private Equity and Energy Funds 

The $221 billion Teacher Retirement System of Texas (TRS) announced $155 million in new commitments across private equity, venture capital, and energy strategies during October, deepening relationships with several existing managers. 

Within private equity, which represents roughly $34 billion of the system’s total portfolio, TRS committed $95 million across three funds. Hg Capital received two new allocations—$50 million to Hg Genesis 11 and $45 million to Hg Mercury 5—both targeting European buyout opportunities. Other U.S. public plans, including the South Carolina Retirement System, also invested in these vehicles. 

A $10 million allocation went to New Enterprise Associates’ NEA TS 2025 SPV, a venture capital vehicle designed to back high-growth technology and healthcare companies. 

In the energy portfolio, TRS committed $50 million to an opportunistic strategy managed by Formentera Partners, an Austin-based energy investment firm founded in 2020 by Bryan Sheffield, Blake London, and Paul Treadwell. The strategy focuses on oil and gas production assets and is part of TRS’s ENRI (Energy, Natural Resources, and Infrastructure) program. 

TRS’s private equity portfolio posted a 5.6% return in the first half of 2025, continuing to outperform many public benchmarks and reinforcing the fund’s long-term diversification strategy.