US pension fund Teacher Retirement System of Texas is planning to invest $200 million in Asian private equity funds. The firm has allocated $100 million each Squadron Capital and Morgan Creek Capital Management, reports . With growth in emerging Asian economies like India, China and Indonesia rebounding, the seventh-largest public pension fund in the US seems to be bullish in placing its bets in these regions.
India, China and Central & Eastern Europe are the most attractive regions for private equity, said a survey of limited partners conducted by the Almeida Capital, a UK based placement agent for private equity, earlier this year. Other US-based pension funds like CalPers (California Public Employees’ Retirement System) have been investing in India private equity funds for some years.
Honk Kong’s Squadron Capital manages over $1 billion while US-based Morgan Creek manages assets worth $9 billion. Squadron has invested in Indian funds like Avigo Capital Partners, a small and medium enterprises focused fund. Morgan Creek is reported to be the anchor investor in CX Partners, the firm started by former Citigroup Venture Capital India head Ajay Relan.