Texas Pension Fund Sold $1 Billion Equity Stake
The Teacher Retirement System of Texas cut its portfolio to shift its long-term investment strategy.
Updated on Oct. 12, 2026 in Investing
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The Teacher Retirement System of Texas closed the sale of a $1 billion private equity portfolio in June 2026. This move was part of a broader shift to lower the fund's target allocation to private equity.
Why it matters
The fund is narrowing its private equity exposure from 14% to 12% to align with updated asset management goals. This reduction marks a strategic shift for the $200 billion pension system as it recalibrates its long-term holdings.
The Teacher Retirement System of Texas sold $1 billion in assets, part of an effort to reduce its target private equity allocation by 2 percentage points. This contributes to a broader secondary market trend that saw $56 billion in LP-led volume during the first half of 2026.
The players
Teacher Retirement System of Texas
A $200 billion pension fund responsible for managing retirement assets for Texas educators.
Coller Capital
An investment firm specializing in the secondary market that purchased the Texas portfolio.
Jefferies
An investment bank that acted as the lead advisor for the Texas pension fund portfolio sale.
EQT
A global investment firm that acquired Coller Capital in August 2026.
The details
To execute this reduction, the fund utilized the secondary market to offload stakes in existing private equity funds, including a position in EQT VII. The investment bank Jefferies managed the complex transaction for the pension system. By selling these interests to Coller Capital, the fund successfully adjusted its exposure levels to meet its new 12% target allocation, down from 14%.
Timeline
2024: TRS decided to reduce its private equity investments.
June 2026: The $1 billion Texas Teachers portfolio sale closed.
H1 2026: LP-led secondary market volume reached $56 billion.
August 2026: EQT acquired Coller Capital.
Money Landscape
Large institutional investors are increasingly using the secondary market to rebalance portfolios, following a trend that saw $56 billion in volume during the first half of 2026. This sale by the Texas fund tracks with similar large-scale divestments seen at other major retirement systems.
While pension portfolio shifts are managed at the institutional level, they influence the overall stability and long-term funding health of state retirement plans. If you are a member of a state pension system, you can monitor your fund's annual reports to understand its investment allocation.
The takeaway
Large pension funds often adjust their asset targets to manage risk and liquidity over long cycles. Retirement savers should review their own fund's annual performance reports to stay informed about how these broad allocation changes might impact the system's long-term health.
Further reading
For more on managing retirement fund allocations, see our guide to Investing.
Source note: This article includes information reported by Pitchbook.
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