Arkansas TRS Commits $225M to PE, RE, Targets $400M to PE in 2025

The Arkansas Teacher Retirement System allocated a total of $225M across six funds, while also disclosing its 2025 target allocation for private equity commitments, including $120M to three Franklin Park funds.

Per recently published materials related to its December 2 board meeting, the retirement system committed $35M each to five buyout funds: Veritas Capital Fund IX, NovaCap International Technologies VII, Revelstoke Capital Partners Fund IV for middle-market; Riverside Value Fund II for lower middle-market; and growth vehicle Peak Rock Capital Fund IV. The pension also allocated $50M to value-add RE strategy Long Wharf Real Estate Partners VII. 

Additionally, the Arkansas TRS is targeting a $400M allocation in private equity for 2025 to maintain its 12% policy weight. The amount will be divided into individual investments of up to $40M across 10 funds, which will include middle-market buyout Franklin Park Corporate Finance Access Fund III, as well as VC vehicles Franklin Park Venture Fund XV and Franklin Park Venture Capital Opportunity Fund II. Of the future PE portfolio, 70% is expected to be allocated to corporate finance equity funds, 20% to venture, and 10% to private credit. 

Per Dakota data, the pension’s current PE allocation stands at 13.38%, translating to $20.7B in total assets, as of June 30. 

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