The Teacher Retirement System of Texas board approved a $2.5 billion private credit commitment pace for the 2026 fiscal year, the largest annual allocation to the strategy in the fund's history.
The pension, which manages approximately $215 billion, has steadily built out its direct lending and opportunistic credit exposure over the past five years as part of a broader shift away from public fixed income.
Manager selection
TRS staff indicated the new commitments will be split roughly evenly between existing relationships and two new manager additions, with a preference for senior secured, floating-rate strategies over subordinated or distressed credit.