Texas Teachers Allocates $75M to European Infra Fund

The Teacher Retirement System of Texas increased its infrastructure exposure last month by allocating $75 million to KKR Global Infrastructure Investors V, a value-add European strategy that recently received a $200 million commitment from the Minnesota State Board of Investment and a $50 million investment from the Arkansas Teacher Retirement System. KKR is a current manager in the program.

The TRS Board of Trustees’ Policy Committee is expected to decide at its September meeting a resolution for the full board to change the Investment Policy Statement of the system. Approval will start a phased-in six-month period for asset classes to move toward their revised goals.

Trustees of the $192 billion fund also authorized adjustments to the fund’s asset allocation, including a decrease of the pension fund’s private equity aim from 14% to 12%. The risk parity portfolio was also reduced to 5% from 8% of assets. The infrastructure program remains the same.