Arkansas Teachers’ Commits To Riverside

The Arkansas Teachers’ Retirement System recently pledged up to $40 million to the latest fund of health care and technology investor Riverside Partners.

Consultant Franklin Park recommended the commitment to Riverside Fund IV, which has a target of $250 million.

Since establishing its private equity program in 1996, the $10 billion retirement system has made commitments to 19 primary funds and four funds of funds. Eight vehicles have been added since March 31, 2009. So far in 2009, $145 million has been committed to private equity. Earlier this year, the LP pledged a total of $40 million to Insight Private Equity Investment ($25 million to Insight Equity II and $15 million to Insight Mezzanine I); and up to $40 million to TA Associates‘s TA XI LP, a fund with a mid-market growth strategy.

Other managers backed by the Arkansas Teachers’ Retirement System include Cinven, Oak Hill Capital Partners and Westbrook Partners LLC.

The LP has a target allocation to private equity of 10 percent, with a range of 7 percent to 13 percent. As of August 2008, the actual private equity allocation stood at 6.3 percent.