The largest public pension find in Texas, the Teacher Retirement System of Texas, which manages some $202bn in assets, has decided to shift almost $10bn out of private equity investments, according to a report by Bloomberg.
TRS is reducing its target allocation to private equity from 14% to 12%, below the average 13% for US public pensions.
As of March, TRS held $33.7bn in private equity, representing 16.7% of its portfolio. Reducing this to 12% means pulling approximately $9.7bn from private equity investments.
TRS plans to implement this reduction starting in October, focusing on smaller middle-market funds instead of large buyout funds.
While TRS is reducing its allocation, other US public pensions have recently increased theirs, including the California Public Employees’ Retirement System, California State Teachers’ Retirement System and New York City’s pension funds.
