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Texas Municipal pledges $100 mln to Foundry Group

  • AUM: $29.13 bln
  • PE portfolio: $1.22 bln; core 35 funds
  • Contact: Chris Schelling at cschelling@tmrs.com
  • Why is it important: TMRS is specifically focused on smaller, mid-market funds

Texas Municipal Retirement System at its February meeting recommended $250 million in PE commitments to funds including the financial and tech sectors.

If approved, the funds would fall in line with TMRS’s goal to add 15 funds in the next few years. As of January 2019, it had 35 PE funds in its portfolio, Buyouts previously reported.

Commitments include:

  • $50 million to Reverence Capital Partners Opportunities Fund II. New York-based Reverence Capital Partners is a middle-market financial services firm focused on asset/wealth management, capital markets and more. The fund is targeting $750 million;
  • $50 million to Arcline Investment Management’s fund, geared toward improving the business models of industrial companies. Arcline I’s target is $1.25 billion;
  • $50 million to Providence Equity Partners’ Strategic Growth Fund IV. The pool pursues lower-middle-market software and technology-enabled businesses, targeting $1.75 billion, and;
  • $100 million to Foundry Group’s Next 2018 Partner Fund, targeting $100 million.

TMRS has an annual pacing target of $400 million to $450 million, Buyouts reported.

The system’s $100 million recommendation to Foundry Group’s 2018 Partner Fund is the largest in this round of investments. And it’s unusual since TMRS usually commits $40 million to $50 million to individual funds. Foundry Group manages $2.5 billion in total assets, the February presentation shows.

The system’s current PE allocation is at 1.6 percent, with a 5 percent target.