This Case is aboutÂ FINANCIAL MANAGEMENT
PUBLICATION DATE: April 04, 2014 PRODUCT #: 214091-PDF-ENGTexas Teachers and the New Texas Way case solution
In the year 2011 Britt Harris, the designated Chief Investment Officer for the $107.4 billion Teachers Retirement System of Texas was contemplating whether to pursue strategic partnerships with a group of big private equity firms. After spending four years vigorously transferring the fifth biggest pension fund in America into alternative asset categories, Harris believed that TRS should not only participate as a limited partner that was typical in private equity funds. Instead, under his suggestion TRS would offer carefully checked companies multi-billion dollar investments through a customized fund construction that guarantees to reinvest 50% of any investment, and had fewer allotment mandates than conventional fund constructions gains back in the investment vehicle. In exchange, obtain greater access to investment professionals within the active companies and Harris expected to receive a highly customized settlement construction.