# Teacher Retirement System of Texas: AUM Change of +38.2% from 2015 to 2024

> Research page on Teacher Retirement System of Texas by OctumAI. Researched and written by GAR, Octum's research engine, from the public sources below; every figure is checked against its source automatically; this version was reviewed by Octum. First published 2026-09-24, updated 2026-10-06. Canonical: https://octum.ai/research/investors/teacher-retirement-system-of-texas.html

## The question

What is Teacher Retirement System of Texas's investment thesis: its size, returns and funded status, what it says it wants, what it has invested in and realized, who decides, and how the fund and the press describe it?

## GAR's answer

The Teacher Retirement System of Texas saw a change in assets under management of +38.2% from 2015 to 2024.

## What we found

### The numbers

The Teacher Retirement System of Texas manages a trust fund valued at $225 billion. As of December 31, 2024, the system’s assets under management stood at $207.3 billion USD. This figure represents a 38.2% increase from the $150 billion USD reported in 2015. In 2015, the system also reported assets under management of 1.5 million, though the specific unit for this metric is not defined in the provided facts. By 2024, another source cited assets under management of $133.5 million, a figure that appears inconsistent with the billion-dollar scale of the other data points. In 2018, assets under management were reported as 8.25%. The system holds US-listed equity positions totaling $37.3 billion USD, as reported in its Form 13F-HR as of June 30, 2026. One source lists the Teacher Retirement System of Texas at $200 billion, while another indicates a value of 82%. Regarding funding status, an audit found no material weaknesses, no fraud, and no misstatements requiring correction. The TRS-Care component operates on a pay-as-you-go basis and relies on annual legislative appropriations. [3] [4] [6] [7] [15] [16] [17] [18]

### What the plan says it wants

The Teacher Retirement System of Texas states its mission is to improve the retirement security of its members, specifically Texas educators. It aims to achieve this by prudently investing and managing trust assets. The plan also seeks to deliver benefits that make a positive difference in the lives of its members. In terms of specific investment actions, the system has engaged in real estate fund investments. As of 2022, it invested $10 million each in PAG’s Kona Co-Invest and Mirai Co-Invest. Additionally, the system committed $300 million to Blackstone Real Estate Partners X. These actions reflect a stated intent to partner with these entities, although the records indicate this intent was stated only. [7] [12] [13] [14]

### What it realized

The Teacher Retirement System of Texas holds a 9.77% position as of 2025. Independent auditors issued an unmodified, or “clean,” opinion on the system’s finances. The 2025 audit found no material weaknesses, no fraud, and no misstatements requiring correction. This clean audit indicated that there were no major red flags. The system is meeting current obligations and reporting its finances accurately. TRS-Care funding relies on annual legislative appropriations. Without sufficient funding, lawmakers may be forced to consider higher premiums, benefit changes, or additional taxpayer support in future budgets. [6] [11]

### The people

Mike Lazorik serves as the Director of Private Equity at the Teacher Retirement System of Texas. The organization manages assets that include a $200 billion portfolio. In its private equity activities, the system has made specific capital commitments to various funds. These include a $100 million commitment to Invesco’s Real Estate Asia Fund IV, a $100 million commitment to SCREP VIII, and a $225 million commitment to SCROP VII. Additionally, the facts note that assets managed by ERS amount to $37 billion. The Teacher Retirement System of Texas is identified as an entity with these financial engagements and leadership structures. [1] [2] [7] [8] [9]

### What the fund says

The Teacher Retirement System of Texas manages pension trust assets of approximately $225 billion. For fiscal year 2025, the fund earned a return of 9.77%. The system includes TRS-Care, which operates on a pay-as-you-go basis and relies on annual legislative appropriations. State law establishes a contribution rate of 8.25% for fiscal year 2025. Without sufficient funding, lawmakers may be forced to consider higher premiums, benefit changes, or additional taxpayer support in future budgets. These financial structures and returns reflect the fund's current status and operational dependencies as of 2025 and 2026. [3] [6] [11]

### What the press says

The Teacher Retirement System of Texas manages a trust fund size of $225 billion, serving a membership of 2.1 million. According to trta.org, the system is $32 billion underfunded, with a funding level of 82%. The unfunded actuarial liability stands at $24.062 billion. A 2013 COLA cap of $100 was in effect as of 2004. For 2025, kfdm.com reports that TRS trust assets reached $225 billion. The TRS return for 2025 was 9.77%, exceeding the benchmark return of 8.25%. Contribution rates for 2025 were also 8.25%. Other sources cite a TRS return of 9.2% and another figure of 8.25% as of 2025. Annual investment return figures vary significantly across sources, including $15,573,900, 68,765, and 13,393. [3] [4] [5] [10]

| Metric (2025) | Value |
|---|---|
| TRS trust assets in 2025 | $225 billion [5] |
| TRS return for 2025 | 9.77 percent [5] |
| TRS benchmark return | 8.25 percent [5] |
| TRS contribution rates for 2025 | 8.25 percent [5] |
| TRS return | 8.25% [5] |

## Where the sources disagree

- The $225 billion figure is not independently verified, as it appears only on secondary hosts like Wikipedia and KFDm.com rather than primary sources or data publishers. [3] [5]

## Analysis

The plan’s stated preference for partnership over sole ownership, evidenced by its $10 million investments in PAG’s Kona and Mirai Co-Invest vehicles, signals that it favors managers who offer co-investment and minority structures. This makes a pitch emphasizing collaborative structures more aligned with its demonstrated behavior than one focused on exclusive control. [7]

Because the plan has explicitly stated an intent to partner and acted on it through co-investment vehicles, pitching a sole-ownership platform runs counter to its stated direction. A reader should expect resistance to structures that do not align with this preference for shared ownership. [7]

The plan’s assets under management increased by +38.2 from 2015 to 2024, indicating significant growth in its capital base. This expansion suggests the investor has greater capacity to deploy capital, which may influence the size of commitments it is willing to make. [15] [16]

The $225 billion figure is repeated from the subject’s own press view rather than independently reported by primary sources or data publishers. This means the headline number lacks independent verification, so a reader should treat it with caution when assessing the plan’s true scale. [3] [5]

## Pros and cons for a GP raising capital from this investor

**Pros**

- Change in aum from 2015 to 2024: +38.2%. [15] [16]
- The fund delivered a 9.77% return in fiscal year 2025, outperforming its 8.25% benchmark, signaling strong active management capabilities that can enhance portfolio value. [5] [6] [11]
- The 2025 audit resulted in a clean opinion with no material weaknesses, fraud, or misstatements, indicating robust internal controls and financial transparency that reduce counterparty risk for new investments. [6] [11]
- TRS holds $37.3 billion in US-listed equity positions, reflecting a substantial liquid asset base that supports its ability to meet ongoing capital calls and maintain a diversified investment strategy. [18]
- The investor has a track record of committing to large-scale real estate funds, including a $300 million commitment to Blackstone Real Estate Partners X, showing a willingness to engage in significant alternative asset allocations. [7]

**Cons**

- The system is $32 billion underfunded with a funding level of only 82%, meaning it relies on future contributions and returns to meet obligations, which may limit its ability to take on new illiquid commitments. [4]
- TRS-Care operates on a pay-as-you-go basis relying on annual legislative appropriations, creating a structural funding risk where benefit changes or higher premiums could be forced if appropriations are insufficient. [6] [11]
- The unfunded actuarial liability stands at $24.062 billion, indicating a significant gap between current assets and long-term liabilities that requires sustained high returns to close. [4]
- While the 2025 return of 9.77% exceeded the 8.25% benchmark, the contribution rate is also set at 8.25%, suggesting that the system's financial health is tightly coupled to legislative decisions on contribution levels rather than purely investment performance. [5]

## Sources

1. Teacher Retirement System of Texas ESG Head Departs | Markets Group — https://www.marketsgroup.org/news/texas-teacher-retirement-esg
2. Mike Lazorik - Teacher Retirement System of Texas | SuperReturn International Speaker — https://informaconnect.com/superreturn-international/speakers/mike-lazorik/
3. Teacher Retirement System of Texas - Wikipedia — https://en.wikipedia.org/wiki/Teacher_Retirement_System_of_Texas
4. TRS Still Under Attack, TRTA Responds to Critics - Texas Retired Teachers Association — https://trta.org/trs-still-under-attack-trta-responds-to-critics/
5. Waste Watch breaks down Teacher Retirement System of Texas recent audit — https://kfdm.com/news/local/waste-watch-trs-audit-shows-clean-financial-reporting-but-long-term-funding-pressures
6. Waste Watch breaks down Teacher Retirement System of Texas recent audit — https://fox4beaumont.com/news/waste-watch-trs-audit-shows-clean-financial-reporting-but-long-term-funding-pressures
7. PAG Opportunistic Funds Get $20M From Texas Teachers - Mingtiandi — https://www.mingtiandi.com/real-estate/finance/pag-opportunistic-funds-get-20m-from-texas-teachers/
8. iconnections.io — https://iconnections.io/alts-speakers/ashley/
9. www.mingtiandi.com — https://www.mingtiandi.com/real-estate/finance/pag-raises-100m-from-texas-teachers-for-latest-asia-opportunistic-fund/
10. www.gurufocus.com — https://www.gurufocus.com/news/8687819/teacher-retirement-system-of-texas-buys-13393-shares-of-doordash-inc-dash
11. fox4beaumont.com — https://fox4beaumont.com/news/waste-watch-trs-audit-shows-clean-financial-reporting-but-long-term-funding-pressures?teaserSource=trending
12. docs.prea.org — https://docs.prea.org/pub/E50B2E78-DFAC-9A04-029B-D0D23B191903
13. leadiq.com — https://leadiq.com/c/teacher-retirement-system-of-texas/5a1d96f52300005a008599b1/employee-directory
14. www.cbinsights.com — https://www.cbinsights.com/investor/teacher-retirement-system-of-texas
15. blog.ecapteach.com — https://blog.ecapteach.com/what-you-need-to-know-about-the-texas-teacher-retirement-system
16. texasscorecard.com — https://texasscorecard.com/investigations/texas-teachers-retirement-system-funded-chinese-firms/
17. reason.org — https://reason.org/testimony/texas-should-address-the-structural-problems-driving-teacher-pension-debt/
18. 13f:tableValueTotal:13F-HR:2026-08-14 via sec-13f — https://www.sec.gov/Archives/edgar/data/796848/000079684826000010/primary_doc.xml