Employees Retirement System of Texas (Texas ERS) expects to hire at least one new infrastructure fund manager as it prepares to invest around $450m (€402m) in the asset class during the next fiscal year, according to the pension fund’s pacing plan.
A board meeting document shows that, for the fiscal year starting in September, Texas ERS plans to hire a fund manager to help increase and further diversify its infrastructure exposure in either Europe or Australasia.
The pension fund is also considering investing with first-time managers that are focused on small and mid-market deals.
Texas ERS plans to mostly target co-investment and direct investments as well as some fund commitments.
Based on the assumption that the $29bn pension fund grows at 3.75% per annum, the potential commitments to infrastructure range from $315m to $585m.