February 20, 2012 / 5:15 PM / 6 years ago

Texas Teacher Retirement fund takes Bridgewater stake-report

NEW YORK, Feb 20 (Reuters) - The Teacher Retirement System of Texas has taken a non-voting equity stake in Bridgewater Associates LP, one of the world's largest hedge fund, as part of a 10-year plan to dilute the stake held by Raymond Dalio, Bridgewater's founder, according to Pensions & Investments magazine.

Trustees on Feb. 16 approved a $250 million investment in privately held Bridgewater, according to the article on the magazine's website on Monday.

The investment is Texas Teachers' first private investment in a money manager, according to a spokeswoman for the $109 billion pension fund.

Texas Teachers is a Bridgewater client. A fund spokesman did not disclose the size of the fund's allocations to Bridgewater's investment strategies, Pensions & Investments said.

About four years ago, Dalio, who founded Bridgewater in 1975 and is also its president and co-chief investment officer, began to gradually reduce his ownership stake and management responsibilities to concentrate more on "what he really loves - markets and managing money," Robert Prince, a Bridgewater co-CIO told the magazine.

Another Bridgewater institutional client has a stake in the firm, the online magazine said. Prince would neither identify the client nor give the size of the investment.

Bridgewater is negotiating with a third institutional client, Pensions & Investments said. Prince declined to identify the client, but said a deal is close to being completed, the magazine said. The company is unlikely to seek additional clients as financiers, it reported.

He also declined to say how much in total financing Bridgewater is seeking from its client-investors.

Dalio's stake in Bridgewater along with his family trusts will be maintained between 10 percent and 20 percent of the firm's equity ownership at the end of the 10-year period, Pensions & Investments said, citing a letter Bridgewater sent to clients on Feb. 17.

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