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LP Scorecard: TPG, Apollo co-invests lead Texas Teachers 2016

Teacher Retirement System of Texas brought in more than $125.8 million in capital distributions from its 2016 investments. That year, the pension committed to 22 PE funds, the most within one year.

All told, in 2016 Texas TRS committed more than $3.7 billion to PE funds, its largest commitment to PE since 2008. It has contributed $1.6 billion, or 67 percent, as of March 31, 2018.

The 22 investments produced a median IRR of 15.89 percent and a median investment multiple of 1.12x.

TPG led all funds in capital distribution with $58 million, nearly four times as much as the next largest distribution. Texas TRS contributed 98 percent of its commitment, $73.5 million of $75 million, to TPG’s co-investment vehicle. The fund produced the only investment multiple to reach more than 2x and had an IRR of 46.19 percent.

Apollo’s co-investment vehicle also received 98 percent of the pension’s commitment. The system contributed $125.1 million of its $126.9 million pledge, which produced the highest IRR at 55.4 percent. The fund had an investment multiple of 1.86x.

Texas TRS made two commitments of at least $450 million.

Permira received the largest commitment at $457 million. The pension contributed close to a third of its commitment, $144.5 million, which produced an IRR of 16.83 percent.

At $450 million, Blackstone was a close second in commitment size. Texas TRS contributed $116 million to Blackstone’s seventh flagship and received $6.5 million for an IRR of 16 percent.

All available numbers for Texas TRS go back to 2000. Since then, Texas TRS has received $24.5 billion in capital distribution from $35.2 billion commitments across all PE funds.