Arkansas Teachers Retirement System approved a commitment of up to $50 million to the $2.0 billion EnCap Energy Transition Fund II.
The board of the $20.7 billion pension fund approved the commitment Sept. 25.
The EnCap Investments' fund will focus on making control investments in new companies pursuing the development of low-carbon energy infrastructure in North America.
Mark White, ATRS' executive director, in response to a board member's query, confirmed that EnCap — a firm that, since its founding in 1988, has allocated roughly three-quarters of its $39 billion in investments to oil and gas production — wouldn't run afoul of recent rules put in place by the state that prohibit doing business with financial firms pursuing environmental, social and governance-related strategies.
