KKR Selected as Strategic Partner by Teacher Retirement System of Texas

November 7, 2011 (PLANSPONSOR.com) - Kohlberg Kravis Roberts & Co. (KKR) announced the Teacher Retirement System of Texas (TRS)  has selected it to be a strategic partner with the responsibility of managing TRS' $3 billion of capital.


The implementation of the strategic partnership between TRS and KKR is subject to the negotiation of definitive documentation and receipt of any requisite approvals.

The KKR strategic partnership with Texas Teachers includes a flexible, discretionary arrangementencompassing $3 billion of long-term capital committed in 2011 ($1 billion to date) and beyond. The partnership takes advantage of the long-term nature of the TRS portfolio to capitalize on market opportunities globally and is designed to deliver a risk reward profile to TRS in a diversified, global portfolio. The partnership also emphasizes significant idea sharing between the staff at Texas Teachers and the KKR team around the world.

“Today’s decision is the culmination of a multiple year effort to create a private markets partnership platform that will support the needs of TRS and its beneficiaries. Over the last three years, we have implemented similar partnerships in public markets, and they have been very successful,” said Steve LeBlanc, Senior Managing Director, External Private Markets at TRS. “These strategic partnerships enable us to work closely with a small group of top tier managers and they allow us to take advantage of the best global investment opportunities.”