Texas Permanent School Fund (Texas PSF) has made an anchor investment of $200m in private equity firm Velocity Capital Management’s Opportunity Fund, with an agreement to negotiate acquiring a minority interest in the firm targeted to close in the fourth quarter.
As part of this agreement, Texas PSF is allocating additional capital for co-investment, credit and real estate opportunities within Velocity’s areas of investment and operational experience – which include the sports, media, and entertainment ecosystem.
The Texas PSF was created by Texas’ first Constitution in 1845 as a perpetual fund to invest for the benefit of the state’s public schools. Since, the Texas PSF has grown to comprise over $56bn in assets and distributes nearly $2.2bn annually to Texas K-12 schools.
In 2021 the 87th Texas Legislature established the Texas PSF as a stand-alone special-purpose governmental corporation.
