Secondary Market Broker/Agent Services

The Teacher Retirement System of Texas (TRS) is requesting proposals for secondary market broker and agent services under Solicitation No. CC-2200004, with proposals due December 3, 2021 at 3:00 p.m. Central Time and questions due October 29, 2021 at 3:00 p.m. Central Time. No set-aside or HUB subcontracting plan is required unless the respondent determines subcontracting is necessary, in which case prior written approval from TRS is mandatory.

TRS seeks qualified vendors to provide advisory services for secondary transactions across its private markets investment portfolio on an as-needed, transaction-based project basis. Services encompass valuation analysis, transaction structure and strategy advice, identification and introduction of potential purchasers, negotiation assistance, and transaction closing coordination. Transactions focus on the sale of private equity, real estate, energy, natural resources, and infrastructure fund interests, with a minimum transaction size of approximately $500 million in net asset value across various strategies and vintages. Portfolio construction priorities include reducing tail vintages, reducing capital concentration around specific managers and funds, selling non-core strategies and managers, maintaining key relationships driving co-investments, and enhancing go-forward returns. Anticipated market activity begins in 2022 and continues throughout the contract term.

Minimum qualifications require four years' experience selling individual portfolios exceeding $500 million in Net Asset Value across multiple underlying funds. Respondents must obtain and maintain Workers' Compensation, Employer's Liability, Commercial General Liability, Professional Liability, and Professional Malpractice insurance with TRS listed as certificate holder.

Compensation is structured as a transaction fee calculated as a percentage of Transaction Value for each transaction advised by the contractor. Respondents may propose different price scales based on varying transaction value ranges. The initial contract term is one year from the date of final signature, with four optional one-year renewal periods available.

Evaluation uses a best-value standard totaling 120 points: Statement of Qualifications and Experience (40 points), Key Personnel Qualifications and Experience (20 points), Technical Approach (20 points), Pricing (20 points), and potential oral presentations (20 points). TRS may conduct presentations or interviews with top-ranked respondents. Addendum No. 1 was issued November 9, 2021, and must be acknowledged by signature on the cover page and included with the submitted response.