Texas Teachers’ Retirement Commits $900M to Private Markets
The Teacher Retirement System of Texas (TRS), managing $210 billion in assets, committed nearly $900 million to private markets in May, with a strong emphasis on energy, infrastructure, private equity, and real estate. Notably, $450 million was directed toward the system’s ENRI portfolio—which covers energy, natural resources, and infrastructure.
The largest commitment, $150 million, went to Energy Capital Partners Management’s ECP VI, which focuses on electricity and sustainability infrastructure. ECP recently partnered with the Canada Public Pension Investment Board in the $16.4 billion exit of Calpine to Constellation Energy.
Three additional ENRI allocations of $100 million each were made to: ArcLight Capital Partners’ ArcLight Aransas Principal Investment Vehicle; ArcLight Power Infrastructure Partners; and Brigham Royalties Management’s BROY Bevo PIV. These follow commitments to the same firms in late 2024.
In private equity, Texas Teachers committed $100 million to Graham Partners’ GP Lonestar Liberty, a U.S. buyout fund targeting industrial technology and advanced manufacturing. Graham Partners is a new manager for the program. Another $75 million went to Vista Equity Partners’ Hubble fund, a buyout vehicle from an existing manager.
Two new managers joined the private equity program: Knox Lane and Seaside Equity Partners. Knox Lane’s KLC Fund 0325-CI LP, a buyout fund focused on pharmaceutical and healthcare services, received $20 million. Seaside Equity Partners’ Seaside Equity Partners III-A and Seaside Equity Partners Navigator I-A, which target control investments in mission-critical service providers in the Western U.S., secured $40 million and $10 million, respectively.
In real estate, Texas Teachers awarded a $200 million mandate to PCCP Equity X, the successor to a fund it backed in 2021. The system also invested in PCCP Clipper Venture II in 2022. PCCP has long focused on commercial real estate, investing across the capital stack, including joint venture equity, senior, and mezzanine debt.