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Texas LP continues its push into VC, commits $255m in 2020

The latest commitments from Texas County and District Retirement System include DCVC Bio, Summit Partners Europe and Mayfield.

The Texas County and District Retirement System (TCDRS) has been an active investor in venture capital and growth equity for over a decade and this year so far appears to be no different.

The Austin, Texas-based pension system has invested $255 million in the asset class from the start of 2020, according to the organization’s website.

The pension fund most recently committed $30 million to DCVC Bio II on May 29. The San Francisco firm is raising a $275 million fund that will focus on early-stage computational biology start-ups, according to a filing with the SEC.

In March, TCDRS agreed to invest €​75 million (about $85 million) in Summit Partners Europe Growth Equity Fund III, a €​1.09 billion fund, which invests in various sectors including healthcare, fintech and technology in Europe.

The pension system also committed $40 million across two Mayfield funds. The Menlo Park firm raised a combined $750 million in March.

Mayfield XVI closed on $475 million and will invest in early-stage consumer and enterprise companies. While Mayfield Select II secured $275 million and will invest in late-stage rounds of existing portfolio companies and in new opportunities.

In March, TCDRS also committed $100 million to two Lightspeed Ventures funds. The Menlo Park firm announced in April that it raised $4.2 billion across three funds.

All commitments were re-ups with existing venture relationships.

In 2019, TCDRS committed more than $460 million to 11 venture funds, including $100 million to New Enterprise Associates 17th fund, which closed earlier this year on $3.6 billion.

The $33.4 billion retirement system has increased its target private equity portfolio allocation from 16 to 18 percent last spring. The actual PE allocation was 15.9 percent as of March 30.

The Texas pension allocates 20 percent of its private equity bucket to venture capital, which is about 3.6 percent of its total portfolio.