The Texas County and District Retirement System (TCDRS) provides retirement, disability, and death benefits to employees of participating Texas counties and special districts. With approximately $40 billion in assets under management and over 800 participating employers, TCDRS is one of the largest county retirement systems in the United States.
Investment Strategy
TCDRS maintains a well-diversified investment portfolio across public equities, fixed income, private equity, real estate, hedge funds, and other alternatives. The Board of Trustees sets strategic allocation targets through a rigorous asset-liability framework, and the internal investment team manages the portfolio within those guidelines.
The alternatives program is a cornerstone of the portfolio strategy. Private equity investments include buyout, growth, and special situations funds across North America, Europe, and Asia. The real estate program spans core, value-add, and opportunistic strategies. Hedge fund allocations are designed to provide absolute returns with lower correlation to public markets.
TCDRS has invested in private equity since the early 2000s and has built a mature program with strong vintage year diversification. The fund has the scale to make meaningful commitments to top-tier managers while maintaining a diversified portfolio across strategies and geographies.
How to Approach
Fund managers should contact the TCDRS investment department in Austin, Texas. The team evaluates new managers through a thorough due diligence process that examines investment performance, team stability, operational quality, and fee terms. TCDRS values managers who demonstrate a clear competitive advantage and strong alignment of interests. Initial outreach should include a brief fund summary and track record highlights.
Frequently Asked Questions
What is TCDRS's alternatives allocation?
TCDRS allocates approximately 22% of its $40 billion portfolio to alternative investments, including private equity, real estate, and hedge funds. The alternatives program has been built over two decades and is managed by an experienced internal investment team in Austin.
How does TCDRS structure its private equity program?
TCDRS invests in private equity through fund commitments and co-investments. The portfolio spans buyout, growth equity, and special situations strategies. Commitment sizes typically range from $50 million to $200 million per fund. The system values diversification across vintage years, geographies, and strategies.
What is the process to engage with TCDRS?
GPs should contact the TCDRS investment team in Austin. The fund has a structured manager evaluation process that includes initial screening, detailed due diligence, and Board-level approval for new relationships. TCDRS also works with investment consultants and attends major industry conferences.
