Texas pension allocates to new private equity fund launch

The $30 billion Texas County & District Retirement System (TCDRS) in Austin added Spectrum Equity IX-A to its expanding private equity portfolio.

The fund received a $50 million commitment by the Texas pension and according to SEC documents is seeking to raise $1.5 billion for its latest strategy.

The Boston-based private equity firm Spectrum Equity has allocated across a number of tech firms over the years including Bitly and Ancestry.com.

For TCDRS, the investment is a latest in long line of commitments made to private equity this year totaling more than $700 million. The private equity portfolio target allocation is $5.4 billion. The program returned a healthy 12.1% in 2019.

Other action from TCDRS’ board meeting was a formal review of investment managers for master limited partnerships. Based on consultant Cliffwater’s recommendation, officials voted to retain the sole master limited partnership manager Harvest Fund Advisors.

Trustees also received the January 2020 capital market assumptions and asset allocation plan. The action was deferred until the June 2020 board meeting however, due to the significant market changes caused by the pandemic.

In one move with the pension’s investment policy, however, officials removed credit from the private equity asset class and created a separate asset class for credit. That asset class includes distressed debt, direct lending and strategic credit.

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