The $34-billion Texas Country & District Retirement System (TCDRS) has committed a total of $628.5 million to private equity funds, including three Hillhouse Capital funds, in September and October, according to its recent investment activity disclosure.
TCDRS, which was created in 1967 to provide Texas country and district employees with retirement, disability, and survivor benefits, committed a total of $200 million to funds managed by Hillhouse – $85 million to Hillhouse Focused Growth Fund V, $15 million to Hillhouse Venture Fund V, and another $100 million to Hillhouse Fund V.
Reuters earlier reported that Asia-focused PE powerhouse Hillhouse Capital is raising what would be Asia’s largest US dollar-denominated fund targeting $13 billion.
The dollar fund, the firm’s fifth, will comprise around $1 billion for venture investment, $2.5 billion for growth-stage companies, and the rest for buyout deals, according to the report.
The private equity major closed the predecessor vehicle, USD-denominated Hillhouse Fund IV, at $10.6 billion in 2018 targeting investments across healthcare, consumer, technology, and services sectors globally, with a focus on Asia, per its website.
Founded by Lei Zhang in 2005 in Beijing, Hillhouse has positioned itself as a global investor with a focus on Asia. Hillhouse’s marquee limited partners include Canada Pension Plan Investment Board, San Francisco Employees’ Retirement System, Yale University, Mayo Clinic, among others.
Its prominent portfolio companies include Airbnb, Uber, Traveloka, Didi, JD.com, Tencent, Meituan, NIO, Beijing-based global biotechnology firm Beigene, Chinese women’s shoe retailer Belle International, among others.
Aside from its commitments to Hillhouse funds, TCDRS also committed $22.5 million to Shine Capital I, $125 million to TCV XI, $95 million to Khosla Ventures VII, $30 million to Khosla Ventures Seed E, and another €90 million to WPEF VIII Feeder.
As of December 31, 2019, TCDRS had nearly $34 billion in net plan assets, and a funded ratio of 89.4 per cent, excluding its general reserve funds.