Texas County & District inks $115 mln in energy PE commitments

  • Texas County & District backs EIV, EnCap
  • New $39 mln commitment to an Accel-KKR credit fund
  • $2.8 bln PE portfolio returns 5.7 pct 10-year annualized

Texas County & District Retirement Systemcommitted $154 million to private equity and credit strategies in December, including more than $100 million for energy-related strategies, the system’s website shows.

The largest commitment, $75 million, went to EnCap Energy Capital Fund XI. Oil-and-gas-focused EnCap Investments began marketing its latest fund with $6.5 billion late last year but may raise as much as $7 billion, Buyouts reported.

The firm’s previous fund closed on $6.5 billion in 2015 and has yet to generate meaningful returns. Fund IX, a $5 billion 2013 vintage, had generated a 3.7 percent internal rate of return as of March 31, California State Teachers’ Retirement System documents say.

In addition to its commitment to EnCap, Texas County & District also allocated $40 million to energy specialist EIV Capital’s third flagship fund, which had raised $341.7 million toward a stated target of $450 million as of Dec. 21, an SEC filing said.

EIV Capital Fund II, a $267 million 2014 vintage fund, was netting a 15.6 percent IRR and 3.2x multiple through June 30, according to California Public Employees’ Retirement System.

Texas County & District Retirement System also allocated $39 million to a new credit fund being raised by Accel-KKR, which specializes in mid-market and technology companies. Accel-KKR Credit Partners is targeting $150 million, an SEC filing says.

Texas County & District’s $2.8 billion PE portfolio had delivered a 5.7 percent 10-year annualized return as of Sept. 30. The retirement system has a 14 percent target allocation to the asset class.

Action Item: For more about Texas County & District Retirement System, visit www.tcdrs.org