San Francisco City & County Employees’ Retirement System will commit $37.5 million to the Capmark Financial High Return fund and $25 million to Capmark’s Apartment Income and Growth fund, part of the system’s plans to allocate up to $200 million into non-core real estate by June 30, 2009, according to an annual plan outlined at a board meeting Tuesday. The balance will be funneled into value and high-return, non-U.S. investments, said Micolyn Yalonis, principal at the Townsend Group, the $16.4 billion system’s real estate consultant. The fund’s $2 billion real estate portfolio already comprises 12% of the system’s overall investments, two percentage points over the target, but a new asset allocation to be discussed at the June 10 meeting will likely raise the target to 12%.
The system’s board approved investments of $30 million each to private equity fund Sankaty Credit Opportunities Fund IV and Weston Presidio Capital VI, a late-stage venture capital fund.
