Arkansas Teacher Retirement System, Little Rock, on Monday committed $35 million to Natural Gas Partners Fund X, confirmed George Hopkins, executive director.
The $11.2 billion system had made an investment with the private equity firm in 2008.
The pension fund committed $115 million to private equity investments at its December meeting, according to recently released minutes. It committed up to $40 million to DW Healthcare III, which will invest in small health-care companies based in North America; and $25 million each to Franklin Park's venture capital fund, international private equity fund and a co-investment fund. Franklin Park is the system's private equity consultant.
Mr. Hopkins said as an accommodation to clients, Franklin Park offers a venture capital and international private equity fund of funds with no management fees. Arkansas Teachers has invested in the annual series of funds since 2008, Mr. Hopkins added. Each Franklin Park fund typically invests in five to seven other funds. The co-investment fund is the first commitment for the system in that fund.
“We get diversification without having to do the accounting and due diligence” by investing with Franklin Park, Mr. Hopkins said in a telephone interview. “Basically, we get a fund of funds without the double fees.”
Separately, the board in December approved making about $235 million in private equity commitments in 2012. It also approved real estate consultant Hewitt EnnisKnupp's recommendation to make one or two value-added commitments totaling up to $60 million and one $40 million opportunistic commitment for 2012.
