Texas Teachers commits $460m in Q1

Commitments included $150m to Apollo’s latest credit opportunities fund.

The Teacher Retirement System of Texas committed about $460 million to four managers in first quarter, according to a spokesperson. The pension fund is comfortably on track to meet its target 2013 commitment of up to $3 billion, the spokesperson added.

Texas Teachers’ had allocated 12 percent of its $117.5 billion assets to private equity and alternatives as of 17 April, according to its website.

First quarter commitments include $150 million each to Apollo Credit Opportunity Fund III and to Insight Venture Partners VIII, as well as $15 million to Spire Capital Partners III and €112 million to Triton’s fourth vehicle, according to the spokesperson.

In January, Texas Teachers’ closed its commitment to Apollo, which is targeting $750 million for its fund, according to documents filed with the US Securities and Exchange Commission.

The pension fund has previously backed a string of private debt fund managers. Past commitments include those to Avenue Capital’s Avenue Special Situations Fund V in 2007, Cerberus Institutional Partners IV in 2006, GSO Capital Solutions Fund in 2009 and its 2012 successor, KKR Special Situations Fund last year, and Wayzata Opportunities Funds II and II in 2008 and 2012 respectively.

Texas Teachers’ has $13.4 billion of private equity and alternative assets under management as of 31 December, according to the presentation. Its private equity division is headed by managing director Rich Hall.

The division aims to allocate 55 percent of its private equity and alternatives commitments to domestic funds, 30 percent to internationally developed funds and 15 percent to international emerging funds, according to the presentation. The system’s actual allocations are 75 percent, 22 percent and 3 percent respectively.

Texas Teachers intends to commit more to buyout funds, followed by growth equity and venture capital and lastly credit and special situation funds, according to its investment plan.