The pension system has committed $25m to CapStreet IV, said the Buyouts magazine.
Earlier this year AltAssets reported that the fund had raised $249.45m from 51 LPs.
CapStreet IV is already larger than the firm’s third fund, which was closed with commitments of $178m in November 2010.
The Houston-based firm is focused on buying stakes in companies based in Texas and other Sunbelt states with enterprise values of less than $150m.
Since its launch in 1990 the firm has invested in 35 companies, which have completed more than 250 add-on deals.
Last year CapStreet completed a majority recapitalisation of TF Hudgins in partnership with the engineering group’s senior management.
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