The Allocator - Mar 29 - Texas Municipal | With Intelligence

Texas Municipal loses senior PM for private equity, venture

Peter Teneriello played key role in $37.8bn investor’s VC, buyout roster

Harry Walker
23 MAR 2022

Peter Teneriello, senior portfolio manager at the Texas Municipal Retirement System, has left the $37.8bn investor after four years of building its private equity portfolio.

Teneriello played a key role in ramping up the fund’s venture capital program, taking its roster from one manager to seven over the course of his tenure.

Texas Municipal’s private equity portfolio accounts for 7.7% or $2.9bn of its overall assets against a 10% or $3.8bn target. Buyouts make up the lion’s share of the bucket, followed closely by venture investments predominantly in tech and software, and alongside a smaller sleeve dedicated to special situations.

The system has a tendency to go after lower mid-market buyout strategies, making it a comparably bold investor relative to its institutional peers in the space.

Likewise, enthusiasm for VC strategies is not as common among public pension funds given the elevated levels of risk.

“If you’d have told me four years ago that this is the portfolio I was going to end up building, I wouldn’t necessarily have said you were crazy, but that’s a tall task to complete,” Teneriello told With Intelligence.

“I’m really proud of what we built at TMRS. It’s not easy for public pensions to invest in private markets, let alone venture capital, and despite the odds being against us in a lot of ways we built a really special portfolio.”

Greenoaks, Techstars, Altimeter and Dragoneer are among the venture partnerships on Texas Municipal’s roster. The investor began its foray into the space with a 2016 investment in Foundry Next.

“Of all the groups in the venture universe, I thought these groups best exemplify what it means to invest like artists – to combine creativity and vision in the way they invest, and that’s the portfolio I ended up building,” Teneriello added.

Teneriello declined to comment on his next project. Texas Municipal did not respond to requests for comment.

The investor next meets on March 24.