Approval of a Pool of Qualified Respondents to the RFQ for Real Estate Investment Managers for the
Permanent School Fund and Approval of Investments in Real Estate Funds
September 16, 2011
COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND: ACTION
STATE BOARD OF EDUCATION: ACTION
SUMMARY: This item provides an opportunity for the committee and board to approve a pool of qualified respondents to the RFQ for real estate investment managers for the Permanent School Fund and approval of investments in real estate funds.
STATUTORY AUTHORITY: Texas Constitution, Article VII, §5(f).
PREVIOUS BOARD ACTION: At the July 2011 meeting, the board approved ten qualified respondents to the RFQ for Real Estate Investment Managers for the Permanent School Fund, including approval of waivers of the requirement for firms to be a Registered Investment Advisor, as applicable. The board also gave the approval to execute agreement(s) with The Blackstone Group, necessary to make an investment commitment of up to $50 million in Blackstone Real Estate Partners Fund VII, subject to continued due diligence and negotiation of fund terms.
BACKGROUND INFORMATION AND SIGNIFICANT ISSUES: At the July 2006 meeting, the board set a strategic asset allocation which included a 6% allocation to real estate.
FISCAL IMPACT: The distribution of the Permanent School Fund is projected to be
$1.9 billion during the 2012-2013 biennium.
PUBLIC AND STUDENT BENEFIT: The distribution of the Permanent School Fund will flow to the school districts and reduce the tax burden to the public and the state of Texas.
PROCEDURAL AND REPORTING IMPLICATIONS: Not applicable.
PUBLIC COMMENTS: None.
ALTERNATIVES: No alternative actions are proposed regarding this item.
OTHER COMMENTS AND RELATED ISSUES: None.
Commissioner of Education
Staff Member Responsible:
Holland Timmins, Executive Administrator
and Chief Investment Officer of the
Texas Permanent School Fund