Arkansas Teacher Retirement System Takes Major Investment Steps
The Arkansas Teacher Retirement System (ATRS) has approved a significant investment and decided to pursue legal action aimed at recovering losses.
Key Investment in Healthcare
On Tuesday, the trustees authorized an investment of up to $45 million in the Sheridan Capital Partners Fund IV, a private equity fund based in Chicago focused on healthcare companies. The fund is aiming for total capital commitments of $800 million, with a maximum cap of $1.1 billion. This fund targets investments in small to lower-middle market U.S. healthcare firms, often those that are founder-owned.
Legal Action Against Sportradar
In addition to the investment, ATRS has authorized the pursuit of lead plaintiff status in a class-action securities lawsuit against Sportradar Group AG, a Swiss company involved in sports data platforms. The ATRS claims to have incurred investment losses exceeding $2 million due to allegations that Sportradar’s revenues were artificially inflated through dealings with illegal gambling operators. Following investigative reports that emerged in April, Sportradar’s stock plummeted by over 22%.
Collaboration with Other Retirement Systems
ATRS’s Director, Mark White, noted that collaboration with the Arkansas Public Employees Retirement System (PERS) could enhance their chances as co-lead plaintiffs. If successful, the combined losses could give both retirement systems a stronger position in the lawsuit. Recent estimates place ATRS’s losses at approximately $2.239 million, while PERS’s losses are around $2.58 million, totaling nearly $4.819 million from both systems.
Ongoing Support from Securities Firms
To represent them in this litigation, ATRS plans to retain Berger Montague, a securities monitoring firm, operating on a contingency fee basis. Similarly, PERS has engaged Kessler Topaz Meltzer Check, LLC for legal representation.
Background on ATRS
The Arkansas Teacher Retirement System is the state’s largest retirement scheme, boasting over $25 billion in total investments and serving more than 120,000 active and retired members.
For more insights, you can follow Michael R. Wickline, the reporter covering state politics for the Arkansas Democrat-Gazette.
