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Texas Permanent School Fund
Texas Permanent School Fund is a other headquartered in United States (North America). Ranked #216 in the 2026 Dealroom Power Law LP Ranking by realised power-law score across its venture commitments.
Historical Background
- The Texas Constitution of 1845 created the Permanent School Fund (PSF), which was seeded with $2 million by the Texas Legislature in 1854.
- The fund was established to provide a continuous source of funding for Texas public education, thereby easing the tax burden on the state's citizens.
- In 2021, the Texas Legislature established the Texas Permanent School Fund Corporation, a special-purpose governmental corporation, to manage the fund.
Source of Capital
- The fund's capital is derived from a diverse range of sources, including state lands, investment returns, and royalties from oil, gas, and mineral rights.
- The initial funding was a $2 million appropriation from the Texas Legislature in 1854.
Major Events
- The most significant recent event was the 2021 creation of the Texas Permanent School Fund Corporation to oversee the fund's investments.
Allocation Strategy
- The fund's asset allocation is determined by the Texas PSF Corporation's board of directors, with a focus on long-term, risk-adjusted returns.
- The target allocation includes 20% to private equity, 14% to large-cap U.S. equity, 12% to real estate, 10% to core bonds, and 8% to private credit.
- The fund is actively working to increase its exposure to private markets, with a particular emphasis on boosting its private credit portfolio.
- A "Texas First" investment strategy is in place, which prioritizes investments that benefit the people, companies, and industries of Texas.
Sources
- https://texaspsf.org/our-history/
- https://www.tshaonline.org/handbook/entries/permanent-school-fund
- https://sboe.texas.gov/state-board-of-education/texas-education-and-the-permanent-school-fund
- https://comptroller.texas.gov/economy/fiscal-notes/archive/2019/jan/history.php
- https://fixedincome.fidelity.com/bin-public/060_www_fidelity_com/documents/fixed-income/Texas_PSF_Primer.pdf
- https://globalswf.com/fund/TEX-PSF
- https://statutes.capitol.texas.gov/docs/ed/htm/ed.43.htm
- https://texaspsf.org/
- https://dallasexpress.com/education/tx-permanent-school-fund-corp-lays-out-five-year-plan/
- https://texaspsf.org/asset-allocation/
- https://www.pionline.com/endowments-and-foundations/texas-permanent-school-fund-ceocio-robert-borden-leans-private-credit
- https://www.buyoutsinsider.com/texas-permanent-school-fund-outlines-co-investment-program-boost-in-pe-pace/
- https://www.privatedebtinvestor.com/texas-psf-eyes-higher-level-of-allocations-to-nascent-private-credit-portfolio/
- https://texaspsf.org/wp-content/uploads/2024/06/TPSFC-Strategic-Plan-2025-2029.pdf