Texas Teachers Pumps $300M Into RE, Infra and PE Programs

The Teacher Retirement System of Texas continues to expand its real estate, infrastructure, and private equity portfolios, with another five managers chosen in June. The pension system announced more than $300 million in new commitments, following the $384 million in pledges approved in May.

Most of the activity was in private equity, with $180 million in commitments split among three managers. Graham Partners, a new manager in the program, received an $80 million allocation to Graham Partners VI, a US buyout fund that closed on July 3 with $1.8 billion in assets.

The strategy collaborates with technology-driven, advanced manufacturing companies in the North American middle market that operate in three key subsectors: industrial technology, medical devices and life sciences, and food and consumer manufacturing.

Kingswood Capital Management received $70 million from the $192 billion Texas Teachers for its Kingswood Capital Opportunities Fund III. The firm invests in buyouts in the U.S., with an emphasis on the lower middle market. The first fund in the series closed in 2021 at $230 million. The third private equity commitment was $25 million to NEA TS 2024 SPV, an NEA venture offering focused on Asia.

In real estate, GreenPoint Group’s GreenPoint REPE Fund I received a $75 million commitment at the end of June. The fund seeks to invest in operating companies that are projected to gain from technological transformation. GreenPoint obtained its first $50 million investment from Texas Teachers last year.

Finally, Riverbend Energy Group, a new energy infrastructure manager for the pension, received a $74 million allocation to its Riverbend XI fund, which invests in the US energy industry.