LP profile

Texas Permanent School Fund

Investor · Founded 1844 · Austin, United States

#269 LP Ranking #18 of 2,413 LPs

Website ↗LinkedIn ↗

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

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.

Advent Partners

Australia

AEW Invest

Germany

Alchemy Partners

United Kingdom

Avedon Capital Partners

Netherlands

BC Partners

United Kingdom

BRV Capital Management

Hong Kong

Carlyle Cardinal Ireland - CCI

Ireland

Cinven

United Kingdom

CLSA Capital Partners

Hong Kong

Crescent Capital Partners

Australia

EQT Group

Sweden

Gaw Capital

Hong Kong

Hellman & Friedman

United Kingdom

Inflexion

United Kingdom

Invesco

United Kingdom

Lanchi Ventures

China

Longreach Capital Partners

Japan

Macquarie Infrastructure and Real Asset

Australia

NB Private Equity Partners

Guernsey

Niam

Sweden

Orchid Asia Group Management

Hong Kong

Pacific Equity Partners

Australia

PAG

Hong Kong

Primavera Capital Group

China

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

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16 VC funds backed

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International Finance Corporation

LP rank #101 · United States

$72B AUM 143 VC funds backed

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Memorial Sloan Kettering

LP rank #108 · United States

$1.4B AUM 28 VC funds backed