Arkansas Teacher Retirement System (ATRS) voted earlier this year to commit USD 40 million to Wicks Capital Partners IV, a 2011 vintage buyout vehicle targeting the lower mid-market and non-core subsidiaries of larger corporations in the US. The fund is primarily looking to make investments in information, education and media industries and has a target size of USD 500 million.
US-based public pension funds are some of the most significant investors in private equity. Preqin’s Investor Intelligence profiles more than 250 US-based public pension funds, with aggregate funds under of management of over USD 2.9 trillion, that are either actively investing in private equity or considering investing in the asset class.
The USD 11.3 billion ATRS’ current private equity allocation – 6.9% of total assets – is slightly above the average allocation across all US public pension funds, which stands at 6.4%. ATRS also has a larger target allocation to the asset class than its peers. The Arkansas system targets 10% of assets to private equity, whereas on average US-based public pension funds aim to allocate 7.6% to the asset class.