San Francisco pension system divides $111 million among 3 private equity funds

San Francisco City & County Employees' Retirement System approved commitments of up to $110.6 million to three private equity funds on Wednesday, said Norm Nickens, the board's secretary.

The pension fund committed up to $50 million to Apollo Global Management's Apollo Investment Fund VIII, up to $45.6 million to Nordic Capital Fund VII, and up to $15 million to Thoma Bravo Special Opportunity Fund.

The Apollo fund is seeking commitments from investors of $12 billion and will be a buyout fund looking for control and opportunistic buyout opportunities, according to meeting documents from the pension fund.

The Nordic Capital fund has already raised $2.2 billion and will limit investments to $4.5 billion, the documents say. The fund will look for buyout opportunities in Norway, Sweden, Finland and Denmark, as well as German-speaking regions of Europe.

The Thoma Bravo fund is seeking to raise $300 million and will invest in small to midsize buyout opportunities. The pension fund in January 2012 approved a commitment of up to $20 million in the manager's Fund X.

That fund, which was oversubscribed after raising a total of $1.275 billion, is seeing strong deal flow, but the average transaction size is increasing, limiting the firm's ability to “execute on many attractive opportunities,” the documents say.

“As a result, (Thoma Bravo) is seeking to raise additional capital to invest alongside all new Fund X investments,” the documents say.