Texas Pension to Spend Up to $15 Billion on Private Market Bets

Texas Municipal Retirement System plans to commit as much as $15 billion over the next five years to a program that will allow it to invest directly in private markets transactions alongside its external fund managers.

The $44 billion pension will commit between $10 million and $200 million each in co-investment opportunities, including in secondaries and growth capital investments, according to a statement from the system.

The move will allow Texas Municipal to deepen its manager relationships and save “hundreds of millions in fees” annually, Yup Kim, its chief investment officer, said in an email to Bloomberg News. ...