Texas Teachers Plows $384M Into Infrastructure, PE Programs

The Teacher Retirement System of Texas, which manages $193 billion in client assets, committed $384 million across four funds to its infrastructure and private equity portfolios last month, according to officials.

Tallvine Partners Management and Macquarie Infrastructure Partners obtained $150 million each for Tallvine Middle Market Infrastructure Fund I and Tython LP, respectively.

The Tallvine fund focuses on operationally oriented middle-market firms and employs a value-add investing strategy. An additional $4 million was given to Tallvine Emerald Management Holdings.

Tallvine Partners, which debuted in 2023, is a new manager for Texas Teachers. The pension system awarded $150 million to Macquarie Infrastructure Partners VI last year, which is Macquarie Group’s infrastructure division.

Bregal Investments has been added as a new manager to the private equity portfolio. The pension system invested €75 million ($80 million) in its Bregal Unternehmerkapital IV-A, a European buyout fund.

The $33 billion private equity program is slightly below the interim policy target of 18% of assets. Meanwhile, the energy, natural resources, and infrastructure program, valued at $14 billion, is on track to meet its 7.1% allocation target.