Texas Municipal Retirement System (TMRS) has set a $1bn (€858m) real assets pacing plan for 2026, which is intended to be split evenly between commitments to funds and co-investment strategies.
TMRS expects to moderately decrease its real estate deployment while relatively increasing its exposure to infrastructure during the period.
TMRS plans to enhance performance by selling off some core real estate to fund more infrastructure co-investments.
According to the pension fund, the co-investment expansion is intended to lower fees and mitigate the blind-pool risk inherent in traditional closed-end funds.
The pension fund’s existing infrastructure portfolio is heavily concentrated in utilities 38%, digital 30% and transportation 22% of its total assets.
The remaining 10% of the portfolio comprises 2% in social infrastructure and 8% in other sectors related to government-regulated development cycles, including maintenance, repair and consulting services.
TMRS has added one new commitment to its real assets portfolio via a $100m commitment to the NP Northwest Corporate Park Aggregator partnership, according to a board meeting document.
No further details regarding this investment were disclosed.
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