Decision on the Private Equity Structure of the Permanent School Fund
February 1, 2013
COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND: ACTION
STATE BOARD OF EDUCATION: CONSENT
SUMMARY: This item provides an opportunity for the committee and board to consider the current private equity structure of the Permanent School Fund and to consider alternative structures.
STATUTORY AUTHORITY: Texas Constitution, Article VII, §5(f).
PREVIOUS BOARD ACTION: At the January 2010 meeting, the board approved the selection of Credit Suisse, Customized Fund Investment Group (CFIG) and NB Alternatives Advisors, LLC to serve as a private equity discretionary separate account manager with a $650 million allocation to each firm.
BACKGROUND INFORMATION AND SIGNIFICANT ISSUES: In July 2006, the board approved a strategic asset allocation plan which included a 6% allocation to private equity.
FISCAL IMPACT: The distribution of the Permanent School Fund is projected to be $2.0 billion during the 2012-2013 biennium.
PROCEDURAL AND REPORTING IMPLICATIONS: Not applicable.
PUBLIC COMMENTS: None.
OTHER COMMENTS AND RELATED ISSUES: None.
Staff Member Responsible:
Holland Timmins, Executive Administrator
and Chief Investment Officer of the
Texas Permanent School Fund