The Rise of Y’all Street Supports a Dynamic Private Markets Ecosystem in Texas

Research reports suggest that there are anywhere between 95 to 105 PE firms based in Texas, with Dallas home to the largest concentration of them. Texas last year attracted approximately $75 billion in PE investments (estimates vary here but this seems to be at the low range of ballpark numbers.)

A dive deeper shows that Dallas is home to about half of the PE business with a majority of focus on middle-market buyouts, industrials, as well as energy and infrastructure. Houston is obviously more of an energy hub and Austin more linked to software, technology and growth equity.

But a quick trip to Dallas last month to attend Bloomberg Invest Dallas, the first of the Invest conferences in that city, showed in boastful display that the state has become a major center not just for the GPs themselves but for PE management, capital management and financial services.

A few observations from conversations and presentations at the event.

• Texas is becoming a significant destination for investment capital: Yes, money is flowing into Texas businesses but just as important is that investment firms are establishing a larger presence in the state, suggesting big bets on opportunity. Goldman Sachs, Morgan Stanley and Wells Fargo have all announced major expansions in Dallas in recent months that bring more than 12,000 jobs to Dallas. Apollo announced in August plans to expand in Austin for emerging businesses, technology, infrastructure and investment platforms. Many showed up in strength at the conference, especially from the wealth groups.
• Texas is becoming a center for capital allocation: The four large pension funds in the state contributed some $370 billion to private- and public-market investments in 2025. Add corporate, municipal and endowments and foundations and the total is closer to $500 billion.
• Texas is becoming home to the middle market: The state has a large and diverse corporate economy with businesses operating in manufacturing, distribution, logistics, healthcare, energy, business services and technology, which provides a potential pipeline of investment opportunities.

And now stock exchanges have entered the capital market scene. The TXSE Group launched Texas Stock Exchange this year, with initial backing from Bank of America, BlackRock, Charles Schwab, Citadel Securities, Goldman Sachs, JPMorgan Chase, and State Street. TXSE joins NYSE Texas and Nasdaq Texas, extensions of the New York exchanges looking for a land grab of sorts.

These are early days for sure for TXSE, but its presence among the three provides an eventual opportunity for middle-market portfolio companies at Texas PE firms looking for an exit outside of sales to strategics or other PE firms.

Time will tell how this matures, but what's clear is the "boom belt" is living up to its name.dit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est.

Mark Kollar
Partner, Prosek Partners

Mark Kollar's monthly Letter from America can be read at The Alternative Investor.