TP
LP profile
Texas Permanent School Fund
Limited partner
Investor · Founded 1844 · Austin, United States
105
VC firms backed
$50B
AUM
~$2.5B
Allocated to VC (est. 5%)
01 · Background
Who Texas Permanent School Fund is.
- 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
- texaspsf.org/our-history
- tshaonline.org/handbook
- sboe.texas.gov/state-board-of-education
- comptroller.texas.gov/economy
- fixedincome.fidelity.com/bin-public
- globalswf.com/fund
- statutes.capitol.texas.gov/docs
- texaspsf.org
- dallasexpress.com/education
- texaspsf.org/asset-allocation
- pionline.com/endowments-and-foundations
- buyoutsinsider.com/texas-permanent-school-fund-outlines-co-investment-program-boost-in-pe-pace
- privatedebtinvestor.com/texas-psf-eyes-higher-level-of-allocations-to-nascent-private-credit-portfolio
- texaspsf.org/wp-content
02 · Fund commitments
The funds Texas Permanent School Fund backs.
Texas Permanent School Fund is a limited partner in 105 funds. 13 of them place in the Power Law Investor Ranking; those lead, best-ranked first.
Notable Capital
#61 Power Law
TCV
#67 Power Law
BlackRock
#83 Power Law
Canaan
#103 Power Law
Meritech Capital
#107 Power Law
FirstMark
#127 Power Law
TPG
#158 Power Law
Warburg Pincus
#233 Power Law
Blackstone
#240 Power Law
KKR
#251 Power Law
ACME Capital
#368 Power Law
Stripes
#437 Power Law
Advent Partners
AEW Invest
Alchemy Partners
Avedon Capital Partners
BC Partners
BRV Capital Management
Carlyle Cardinal Ireland - CCI
Cinven
CLSA Capital Partners
Crescent Capital Partners
EQT Group
Gaw Capital
Hellman & Friedman
Inflexion
Invesco
Lanchi Ventures
Longreach Capital Partners
Macquarie Infrastructure and Real Asset
NB Private Equity Partners
Niam
Orchid Asia Group Management
Pacific Equity Partners
PAG
Primavera Capital Group
03 · Allocation
How Texas Permanent School Fund’s fund book is spread.
The 105 funds Texas Permanent School Fund backs, by where the manager is headquartered and how many funds that manager has raised.
Where those managers are based
By fund headquarters.
- North America 7571%
- Rest of world 1615%
- Europe 1413%
United States 75 · United Kingdom 8 · Hong Kong 6 · Australia 4
How established those managers are
Managers grouped by how many funds they have raised — across the 83 of 105 with a fund history on record.
Emerging funds · 35
Established funds · 48
15
1
12
2
8
3
7
4
10
5-6
13
7-9
9
10-14
9
15+
Funds raised by the manager
04 · Other LPs
Other LPs.
Other LPs in the Power Law LP ranking, closest to Texas Permanent School Fund by combined power-law score — North America first, then the nearest worldwide.
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Metlife Investors USA Insurance
16 VC funds backed
🇺🇸
International Finance Corporation
$72B AUM
143 VC funds backed
🇺🇸
Memorial Sloan Kettering
$1.4B AUM
28 VC funds backed
🇺🇸
Duke Management Company
$12B AUM
20 VC funds backed
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Sequoia
$88B AUM
23 VC funds backed
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Gopher Asset Management
54 VC funds backed
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500 Global
$2.5B AUM
5 VC funds backed
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Broadhaven Ventures
$100M AUM
13 VC funds backed