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Texas MRS commits to Tritium, Main Post Partners

  • Assets under management: $28.6 bln
  • PE target: 5 pct
  • PE allocation: 1.4 pct/$404 mln
  • Whom to contact: Christopher Schelling, director, private equity (cschelling@tmrs.com)
  • Why this is important: The LP is open to debut and sophomore funds

Texas Municipal Retirement System at its Sept 27-28 meeting committed $110 million to sophomore funds from Tritium Partners and Main Post Partners.

The pension system re-upped $60 million to Tritium’s second fund targeting $375 million. This fund will make 12 to 14 control investments in U.S.-based middle-market growth/buyouts companies in internet/information services, supply chain/logistics and business/financial services businesses.

Tritium will invest $15 million to $50 million in companies generating Ebitda between $2 million and $20 million, pension documents said.

The firm’s debut fund closed at $309 million in 2015.

Tritium was founded in 2013 by Phil Siegel and David Lack of Austin Ventures. Its portfolio companies include GIACT, Inova Payroll, RVshare, Vacation Innovations, rateGenius and DCS Global.

Texas Municipal also committed $50 million to Main Post Partners’ second fund, targeting $600 million.

Main Post is a growth equity firm focused on consumer value chain businesses. It will invest between $20 million and $100 million in equity to take control or non-control positions, documents said.

Main Post was founded by Jeff Mills and Sean Honey in 2014. The duo previously managed Weston Presidio’s consumer, business services and industrial sectors practice.

Tritium and Main Post’s sophomore funds were targeting an internal rate of return exceeding 25 percent, documents said.

Texas Municipal has committed $417 million to its PE portfolio in 2018 to date, in line with its $500 million pacing target for the year.

A recent entrant to PE, Texas Municipal has supported debut and sophomore funds.

It backed former GSO Capital Partner Tim White’s debut fund, Dunes Point Capital, and LightBay Capital, founded by original members of Ares Management.

“I want a Fund I upside with a Fund III risk,” Christopher Schelling, director of PE, told Buyouts for an earlier article.

Texas Municipal’s PE portfolio returned 35 percent for one year ended June 30, 2018. It had an allocation of 1.4 percent compared to its target allocation of 5 percent.

Action Item: Read more on Texas Municipal’s strategy here https://bit.ly/2DOarUt