The Texas County & District Retirement System (TCDRS) in Austin added two funds to its private equity portfolio in recent weeks.
The move comes as the $42 billion pension system decided to pare back the annual commitment to private equity, which was lowered to $1.8 billion from $2.6 billion in 2022. According to a presentation made by Cliffwater, this change reflects a decline in public markets that has led the pension fund’s actual PE exposure to exceed its long-term target of 25% of overall assets.
The managers hired were growth equity focused Parthenon Capital and ZMC, an investor in media, entertainment, communications and technology business. Parthenon Investors VII, which recently closed at $4.5 billion, received a $110 million commitment. As the ZMC IV fund saw a $75 million investment.
