The Teacher Retirement System of Texas is planning to open an office in London as part of its increasing focus on co-investments.
The US pension fund said the office, which it expects to open by November, would be its first outside the US.
Texas Teachers said it hoped to increase its access to investment opportunities in Europe and the UK, particularly through co-investments, as well as improve its knowledge of the markets.
Infrastructure and real estate are likely to form part of the new office’s remit.
Vaughn Brock, former director of special projects for investment management, will run the office.
Brock has overseen energy and natural resources for the fund.
Executive director Brian Guthrie said the pension fund’s presence in London would be small, with a staff of just three.
But he added that Texas Teachers was “ready to hit the ground running to identify new investment opportunities in real time”.
“By opening a London office,” he said, “we will redeploy existing resources so they are closer to where the action is.
“This will also help reduce unnecessary travel back and forth from Austin.”
Two staff members will be relocated from Austin, with one additional European investment professional in London.
Board chairman David Kelly said: “We are confident our new London office will give [us] a strategic advantage in terms of identifying investment opportunities in the UK and Europe that can deliver greater returns at a lower cost to our members.”
Texas Teachers said it looked at London as part of an initiative led by deputy CIO Jerry Albright.