External Private Markets

Mission

Private Markets has a global mandate to invest in (i) Private Equity, (ii) Real Assets and (iii) Energy, Natural Resources & Infrastructure. Our team of over 70 investment professionals partners with best-in-class managers through commingled funds, separate accounts, co-investments and direct investments to enhance TRS’ long-term risk-adjusted returns and provide diversification to the overall Trust. Private Equity, Real Assets and Energy & Natural Resources combined target allocation is 35% of the overall Trust:

Portfolio Allocation

Private Markets has a combined target allocation equal to 35% of the overall Trust.

Private Markets includes a 14% target allocation to Private Equity, 15% target allocation to Real Assets, and 6% target allocation to Energy, Natural Resources & Infrastructure. Within Private Equity, we allocate to the following strategies: Buyout and Venture Capital. Within Real Assets, our strategies include Core, Opportunistic, Value-Add, and Special Situations. Within Energy, Natural Resources & Infrastructure, our strategies include Value-Add, Opportunistic and Core.

Private Equity

Private Equity invests in commingled funds, direct and co-investments. The team targets investments in privately-held common and preferred stock, convertible securities, debt obligations and other instruments that relate to ownership in an issuer.

Our primary strategies:

• Buyout: acquiring majority ownership in companies, typically with the use of leverage. Buyouts often include operational improvements to enhance business fundamentals, drive value creation and better position the company for a favorable exit.
• Growth Equity & Venture Capital: providing early-stage or growth capital to assist in the development and maturation of a company. Investments in this strategy are typically in non-control common equity or preferred equity securities.

Real Assets

Real Assets manages a global portfolio of commercial and residential real estate investments. We are focused on properties in major markets and invest in all property types including office, multi-family, retail, and industrial. Our team participates in both debt and equity investments through commingled funds, separate accounts, co-investments, and direct principal investments.

Our primary strategies:

• Core: institutional-quality, well-leased assets of the highest quality in each major property type
  
• Opportunistic: high-return-seeking strategies typically involving some level of development, re-development or distress
• Value-Add: strategies executed at the property level designed to enhance value. Typical strategies include lease-up, repositioning or light rehabilitation
• Special Situations: investments in public or private real estate debt or securities, distressed debt, listed real estate investment trusts (REITs), and real estate operating companies

Energy, Natural Resources & Infrastructure

Energy, Natural Resources, & Infrastructure (ENRI) invests in commingled funds, direct and co-investments.  The team targets investments with commodity-like characteristics and exposure to each of the stages of the resource value chain: upstream, midstream, downstream, and services & technology.  Additionally, the ENRI portfolio invests in energy infrastructure assets in the midstream sector, as well as other infrastructure assets.

Our primary strategies:

• Resources – Value Add: investing in upstream oil and natural gas enhanced reserves, with returns generated through the development and selling of proven reserves
• Resources – Opportunistic: investing in exploration and production of oil and natural gas acreage
• Resources – Core: investing in agriculture and timber, with returns generated through land appreciation and yield of grown commodities
• Infrastructure – Value Add: investing in oil and natural gas midstream gathering and distribution assets, master limited partnerships, and existing infrastructure assets with defensible positions and long-term stable cash flows
• Infrastructure – Opportunistic: investing in the development of new midstream oil and natural gas projects, and investments in new infrastructure assets with long-term stable cash flows

Data and Analytics

• Private Markets Data Analytics consists of data architects, data scientists, and data analysts who specialize in private markets data. Collectively, the team collects, stores, and transforms raw data into meaningful information, insights, reporting, and dynamic dashboards. This information is used to optimize processes, identify key trends, and enhance decision making. Our analytics focus is broken into these categories:
• Descriptive Analytics: describes what has happened over a given period of time (returns, NAV growth, sector or geographic focus, etc.)
• Predictive Analytics: identifies trends and analyzes what is likely to happen in the future
• Process Analytics: identifies efficiencies and enhancements in process and reporting to reduce manual inputs and errors
  

Portfolio Initiatives

Private Markets Portfolio Initiatives focuses on strategic planning, investment process analysis, and implementation of tools and initiatives to support portfolio management. This team works hand in hand with the Data and Analytics team to optimize processes and enhance decision making.