The $23 billion Employee Retirement System of Texas is looking to allocate a combined 15% of its total assets to private equity and real estate, according to spokeswoman Mary Jane Wardlow. The allocation will be split evenly between the two asset classes.
“It’s going to take some time to get this underway so the number that is being reported of $3.5 billion is inconsequential,” said Wardlow. San Francisco-based Callan Associates, which is serving as the system’s consultant, has estimated that it will take the system five to seven years to reach the target for private equity and three to five years for real estate.
The system’s next board meeting is slated for February.