Texas’ Biggest Pension Fund to Pull Almost $10 Billion From Private Equity
- Pension giant reduces target allocation for asset class to 12%
- Change will begin in October and take several years to achieve
Texas Teachers is the second of the largest public pensions to officially reduce its target allocation to private equity.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Texas’ largest public pension fund has decided to shift almost $10 billion out of private equity investments, a blow to an asset class that has faced heightened scrutiny amid dwindling returns and a slowdown in exits for portfolio companies.
The move by the Teacher Retirement System of Texas — which manages $202 billion of assets — is another setback for an industry that has struggled with dealmaking and fundraising after a prolonged era of easy profits.