The Teacher Retirement System of Texas (TRS) is investing $200 million in the GSO Capital Opportunities Fund (COF) III, according to a recent investment report shared with PDI. The $128 billion pension fund has invested with several other GSO strategies in the past.
According to PDI Research & Analytics, TRS also has money in the GSO Energy Select Opportunities Fund, a GSO Energy Partners separate account and the GSO Capital Solutions funds, a distressed series. The pension fund’s other debt investments include funds managed by Oaktree Capital Management, Avenue Capital Group, KKR and TPG Special Situations Partners, among others.
Texas Teachers’ recent investment report included another private equity investment in a Carlyle Star Co-Investment Fund at $200 million, as well as $500 million placed with real estate and real asset funds managed by Almanac Realty Investors, Oaktree Capital Management and Westbrook Partners.
GSO’s COF III fund is the firm’s third mezzanine vehicle and is targeting $6 billion with a $6.5 billion hard-cap. The Massachusetts Pension Reserves Investment Management board also recently invested $225 million into the fund and its co-investment companion. The board of the Indiana Public Retirement System approved a $75 million commitment to the fund in June as well.
The Blackstone-owned firm has been holding interim closes on the mezzanine fund while continuously gathering assets. It’s expected to close near its hard-cap towards the end of the summer, according to LPs familiar with the vehicle.
Other large junior debt funds currently in market include Crescent Capital’s seventh mezzanine fund, which is targeting $3 billion, and HPS Investment Partners’ third mezzanine fund, which is gathering $5.5 billion. Crescent is meant to hold a second close on $2.5 billion soon, as PDI exclusively reported, while Highbridge has so far collected $4.3 billion, according to sources.