TMRS approves $500m in commitments

The Austin-based public pension has backed two corporate distressed debt vehicles.

Institution: Texas Municipal Retirement System
Headquarters: Austin, US
AUM: $34.5 billion
Allocation to alternatives: 31.55%

Texas Municipal Retirement System has disclosed up to $500 million in commitments across two private debt vehicles, according to materials from a September 2021 board meeting. Commitments of $250 million each to Pemberton Strategic Credit Opportunities Fund II and GoldenTree Distressed Fund IV have been confirmed.

Pemberton Asset Management launched its second series fund in January 2020, seeking €2 billion in capital commitments. As of September 2021, the fund has raised close to 75 percent of that target. GoldenTree Distressed Fund IV launched in July 2021, following its predecessor which closed in April 2019 having raised $1.7 billion in investor capital.

The $34.5 billion US public pension has a 20 percent target allocation to private debt that currently stands at 18.03 percent.

As illustrated below, TMRS’ recent private debt commitments have tended to focus on corporate and real estate debt vehicles, targeting distressed and mezzanine returns in North America and Europe.

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