Arkansas Teacher Retirement System has made a $50m (€47.7m) commitment to Long Wharf Capital’s latest US value-add real estate fund.
According to the pension fund’s board meeting document, the Long Wharf Real Estate Partners VII fund has secured $323m in commitments, with an additional $155m currently under due diligence.
Long Wharf plans a $5m co-investment into the fund but did not respond to a request for comment.
Partners VII aims to raise $500m, with a hard cap of $650m, targeting a final close by the end of 2024.
The fund expects to achieve 12% to 15% net internal rate of retruns with 65% leverage over its eight-year term. Its portfolio is expected to consist of 30%-40% industrial, 20%-30% multifamily, up to 5% office, 10%-20% retail, 10%-15% hotels and 5%-10% other property types, with development capped at 25%.
Arkansas Teacher has set a $750m real assets allocation plan for 2025, involving allocating $300m to core real estate, $100m to value-add/opportunistic real estate and $350m to infrastructure.
The pension fund had allocated $250m for core real estate investments in 2024, but no commitments were approved for this strategy.
The allocation plan infrastructure investment in 2024 was $50m but the pension fund ended up investing $100m in the sector.
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