San Francisco City and County Employees Retirement System committed $45 million to two private equity funds, confirmed David Kushner, deputy director of investments. The $16 billion system committed $20 million to Weathergage Venture Capital, a fund of funds that will target the information technology and life sciences sector, and added a $25 million commitment to Merit Energy Partners VI, doubling its investment in that fund, according to a staff memo to the retirement board. Merit has provided an internal rate of return of 19% since the system first invested with the firm in 1992, according to the memo. Both will be funded from cash, said Mr. Kushner.
The system also targeted four companies that do business in Sudan for divestment and put another five on a Sudan-related watchlist, confirmed Clare Murphy, executive director. Trustees agreed to divest from Alcatel, China National Petroleum Corp., Harbin Power Equipment Ltd. and PetroChina Co. Ltd. The funds holdings in these companies total $4.7 million, according to a staff memo to the board. The systems managers have until years end to divest, said Ms. Murphy.