Texas County & District invests $50m in RRJ’s second fund

According to a TCDRS announcement, the commitment to RRJ Capital Master Fund II was made in December. The LP's previous Asia specific investment was $40 million for Hony Capital Fund V, which reached a final close of $2.36 billion in early 2012.

TCDRS had $17.6 billion under management at the end of 2011 and relies on investment earnings for more than three quarters of its asset growth. The pension system allocates 10% of its assets to private equity, 2% to private real estate and 25% to hedge funds. Debt and equity products account for most of the remainder.

Its private equity investments delivered a 9.5% return in 2011, trailing only Treasury inflation-protected securities (13.2%) and private real estate (12.9%).

TCDRS had $2.21 billion of committed capital in 73 private equity partnerships at year-end 2011 and invested a further $70 million during the first quarter of 2012. It seeks to work with private equity firms that target privatizations, back start-up companies with new ideas and technologies, or invest in traditional and renewable energy discovery and production.

RRJ clearly has an appetite for energy and related assets, having invested in Kulun Energy, Cheniere Energy and Frac Tech Services. The GP doesn't have an Asia-specific mandate, although it frequently co-invests with the likes of Temasek and targets companies that are relevant to the region's needs.

Several pan-Asia buyouts funds are currently in the market, including vehicles launched by TPG Capital, The Carlyle Group, Affinity Equity Partners and MBK Partners. KKR is said to have reached the $6 billion target for its second regional fund, while Bain Capital and PAG have also reached final closes.

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• Topics
• Fundraising
• LPs
• GPs
• Greater China
• Southeast Asia
• RRJ Capital
• Fundraising
• Asia
• USA
• Texas County & District Retirement System (TCDRS)
• Temasek Holdings
• energy