E69: How Texas Municipal Retirement System Deployed $1B into Venture Capital

Peter Teneriello, former Senior Portfolio Manager at Texas Municipal Retirement System, sits down with David Weisburd to discuss how TMRS deployed $1B into venture capital. In addition, they discuss institutional allocation pacing models, the importance of aligned investment teams and why investors may allocate to median performing managers. (0:00) Introduction to venture capital fund tiers and TMRS investment strategy (1:11) Alpha generation vs. diversification in venture capital (2:21) Venture book construction with a focus on manager selection (4:27) Investment structures and fee considerations (5:03) Common pitfalls in venture investing and pacing strategies (6:58) Key takeaways from TMRS's experience (8:02) Role of governance in LP returns and consultant alignment (10:59) Strategic rationale behind 2nd quartile fund investments (12:25) Strategies for accessing top venture funds (14:23) Sponsor: Subscribe to the newsletter (15:39) Strengthening LP-GP relationships and team alignment (17:07) Conclusion and additional resources