Arkansas Teacher Retirement System, Little Rock, committed up to $80 million total to three funds and approved alternatives investment goals for 2015, said George Hopkins, executive director.
The $14.7 billion pension fund committed up to $30 million to Almanac Realty Securities VII, managed by Almanac Realty Investors. The real estate fund pairs “capital with strong operators that use development, redevelopment or active leasing and management strategies to seek attractive returns with downside protection,” said materials prepared for last week's investment committee meeting.
The pension fund has made commitments to previous Almanac Realty funds.
Separately, the pension fund committed up to $50 million total to two Franklin Park private equity funds of funds: $25 million each to its Venture Fund 2015 and International Fund 2015.
Franklin Park is the pension fund's private equity consultant and offers funds of funds to its clients. The pension fund has invested in the firm's venture capital funds every year since 2009.
The commitments were made as part of the pension fund's private equity plan for 2015, which calls for Arkansas Teachers to commit a total of $245 million to private equity managers in the calendar year.
To reach the pension fund's 2015 private equity target and maintain its 10% allocation to the asset class, Franklin Park will commit an additional $25 million to a debt/distressed fund and $170 million total to four to six funds with buyout, growth equity, turnaround or debt strategies in the calendar year. Interested managers can contact the pension fund, Mr. Hopkins said.
Pension fund officials also approved investment consultant Hewitt EnnisKnupp's recommendation to commit a total of $60 million to value-added and opportunistic real estate managers in calendar year 2015. Interested managers can contact the pension fund, Mr. Hopkins said.
The pension has a 15% target allocation to real assets and a current allocation of roughly 12%. The real assets portfolio is composed of real estate, infrastructure, timberland and farmland investments.