Arkansas Teachers Retirement System, Little Rock, committed a total of $190 million to investments in real estate, private equity and debt and emerging markets, said George Hopkins, executive director of the $10.2 billion fund.
The fund added $50 million each to its allocations to two real estate funds — UBS Trumbull Property Fund, which already had $109 million from Arkansas Teachers, and J.P. Morgan Strategic Property Fund, which had $94 million.
Those investments were recommended by the fund's general consultant, Ennis Knupp, and by fund staffers, Mr. Hopkins said.
“The strength of the recommendation is based upon the quality of the teams in place and the teams' historic ability to identify and execute upon quality properties at favorable prices,” according to an executive summary of the system's April 5 investment committee meeting. “ATRS staff feels the quality managers, coupled with what appears to be excellent timing in the real estate market, is a great opportunity to enhance overall returns in this less risky area of the real estate market.”
Arkansas Teachers also made the following new commitments:
•up to $40 million to the Mason Wells Buyout Fund III, which acquires small and middle-market companies in the Midwest;
•up to $25 million in the Audax Mezzanine Fund III, a private debt fund; and
•up to $25 million to the Franklin Park International Fund 2010, an emerging markets private equity fund of funds. Franklin Park, the system's private equity consultant, is providing the system access to the fund at its cost without management fees, Mr. Hopkins said.