Arkansas Teacher Retirement System (ATRS) has approved a $50m (€47m) commitment to Carlyle’s latest US opportunistic real estate fund.
The pension fund disclosed in a meeting document that it has placed the capital into Carlyle Realty Partners X, a fund seeking to raise between $8bn to $10bn.
According to consultant Townsend, Carlyle has mainly focused on development projects for Realty Partners VIII and IX. This strategy represents over 90% of investments in the past two funds and is expected to continue with Realty Partners X.
Realty Partners IX has so far invested 77% of its capital, but with the current rate of investment, it’s expected to be fully committed by the end of the year.
Realty Partners X is not expected to begin investing its capital until sometime between late this year and early next year.
As previously reported, Carlyle is expected to have a first single close for Realty Partners X at the end of June 2024.
Realty Partners X targets returns of 13% to 17% on a net basis using 50% to 65% leverage over a ten-year term.
Carlyle did not respond to a request for comment.
The amount ATRS is committing to Realty Partners Xl represents one-third of the $150m the pension fund plans to invest into value-add and opportunistic real estate in 2024.
ATRS is yet to make any commitments towards core real estate this year, where it has set aside $250m for the strategy.
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