Arkansas Teacher Retirement System (ATRS) has made $300m (€274.3m) worth of real assets commitments through real estate funds managed by Ares and Carlyle, and infrastructure funds managed by KKR and Axium Infrastructure.
The pension fund disclosed in a meeting document that it placed $100m each into the Ares Industrial Real Estate Fund and the Carlyle Property Investors fund. ATRS also allocated $50m each to the Axium Infrastructure North America II and the KKR Diversified Core Infrastructure Fund.
The open-ended Ares industrial fund, which invests in class-A and B quality US assets, has a current net asset value of $3.1bn and comprises 202 properties.
The fund’s strategy allows for up to 50% allocation to non-core investments, with half of this non-core portion aimed at new development opportunities. The fund expects to outperform the NPI Industrial Index by 50bps to 100bps over market cycles. Its net internal rate of return over the past five years is 11.2%.
According to the board meeting document, Carlyle’s core-plus open-ended fund has a current net asset value of $6.9bn. The fund holds a total of 131 assets, including investments in manufactured housing, senior housing, data centres, single-family rentals, industrial outdoor storage and self-storage.
Axium North America II is an open-ended fund with a current net asset value of $8.5bn. It invests in core assets within the social, transport, renewable energy and utilities sectors in North America.
The KKR infrastructure fund has a current net asset value of $9.8bn and primarily invests in OECD countries within North America, Western Europe and developed Asia.
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