The Arkansas Teacher Retirement System has stepped up its allocation to real assets and private credit, committing $150 million to real estate in recent months and outlining a $550 million pacing plan for real assets in 2026. 

The $24 billion state pension also approved a 5% target allocation to private credit, expanding well beyond its existing exposure to real estate credit. The allocation is expected to span senior secured and unsecured loans, asset-backed financing, and securitized lease structures supported by diversified collateral pools. 

On the real estate side, Arkansas Teachers made a $100 million commitment to the Realty Income U.S. Core Plus Fund, managed by Realty Income Investment Management. The perpetual, open-end vehicle focuses on acquiring and managing a diversified portfolio of U.S. net lease assets, primarily investment-grade, fully leased retail and industrial properties. The fund represents Realty Income’s first open-end institutional vehicle in the core-plus space. 

The pension also committed $50 million to Raith Real Estate Fund IV, a closed-end strategy managed by Raith Capital Partners. The fund plans to build a portfolio of 15 to 20 investments with gross asset values ranging from $50 million to $250 million. Roughly 80% of capital is expected to be allocated to industrial and residential-related assets, with the remainder targeting retail, storage, and select specialty sectors, including data centers. 

Despite the new commitments, performance remains challenged. The system’s $1.7 billion real estate portfolio returned less than 1% for the year ended September 30. 

Looking ahead, Arkansas Teachers’ real assets program—spanning real estate and infrastructure—totals approximately $3 billion. The 2026 pacing plan calls for $200 million each to core/core-plus and value-add or opportunistic real estate, alongside $150 million for infrastructure, signaling continued conviction in real assets as a long-term portfolio stabilizer. 

More than 400 of the most influential leaders in cybersecurity and digital infrastructure are gathering in Montreal for Connect North American Investment in Digital Infrastructure & AI on February 11. Secure your seat at this year’s most pivotal event where the future of Canada’s digital security and competitive advantage will be decided. Join visionary executives, top decision-makers, and innovators across digital infrastructure, energy innovation, and cybersecurity sectors for high-level discussions, breakthrough strategies, and business opportunities that will set the agenda for the year ahead. To view the full lineup of speakers visit www.connectdigitalai2026.com