Private Equity News & Analysis

Arkansas Teacher commits $105m

The $11.7bn retirement system used almost a third of its annual private equity allocation on commitments to Riverside Partners, Court Square Partners and TPG Credit.

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The Arkansas Teacher Retirement System invested $105 million in private equity at its meeting last week, committing $35 million each to Riverside Partners, Court Square Partners and TPG Credit.

At its December meeting, the board approved an allocation of $235 million to private equity for 2012, which will allow the $11.7 billion retirement system to maintain a 10 percent allocation to the asset class. The most recent commitments were made through that allocation, director George Hopkins told Private Equity International. 

Riverside, which is reportedly targeting $500 million for its fifth fund, had raised at least $230 million as of 26 March, according to US Securities and Exchange Commission documents. The firm, which was founded in 1988, typically invests in companies in the healthcare and technology business with revenues between $10 million and $100 million. The El Paso Firemen & Policemen’s Pension Fund has also committed to Fund V. The firm’s predecessor fund raised $406 million in 2009. 

The retirement system also committed $35 million to Court Square Partners’ third fund, which is targeting $3 billion, according to SEC documents. Court Square typically invests in the building products, business services, chemicals, consumer products, food products and services, healthcare, manufacturing, media, technology, telecommunications and transportation sectors. Its previous fund was generating 10.4 percent IRR and 1.3x return as of 30 June, according to CalPERS. 

TPG Credit, an affiliate of TPG Capital, picked up $35 million for its second credit strategies fund. SEC filings indicate that TPG Credit Strategies Fund II had raised $220 million on a reported $800 million target as of August. The firm’s first credit strategies fund had generated a 4.2 percent net internal rate of return and a 1.2x multiple as of 30 June, according to CalPERS documents.

In addition to allocating $105 million to private equity, Arkansas also committed up to $30 million to Rockwood Capital Real Estate Partners Fund IX.