The Arkansas Teacher Retirement System board approved up to $140 million in commitments to three private markets managers this week.
The $20.3 billion, Little Rock-based pension fund will commit up to $50 million to Chatham Asset Private Debt and Strategic Capital Fund IV, a best ideas strategy run by Chatham, N.J.-based Chatham Asset Management, which is looking to garner between $300 million and $500 million to extend credit to lower middle-market companies.
The board also approved committing up to $40 million to the Prophet Mortgage Servicing Opportunities Fund, which Austin, Texas-based general partner Prophet Capital Asset Management is looking to raise $700 million for, with a strategy focused on providing capital in exchange for excess servicing fees.
The ATRS board approved committing up to $50 million to Lone Star Real Estate Fund VII, a $6 billion closed-end, global fund offered by Dallas-based Lone Star Funds, investing in distressed and opportunistic commercial real estate debt and equity assets.
Rod Graves, the deputy director of ATRS poised to assume the role of interim executive director at the end of April, in an email said execution of closing documents for the three commitments are subject to "final due diligence findings and acceptable terms being reached."
