Updated with correction
San Francisco City & County Employees' Retirement System committed $250 million total to four funds.
William J. Coaker Jr., chief investment officer, announced at Wednesday's board meeting that the $20.6 billion pension fund approved a $100 million commitment to Real Estate Capital Asia Partners IV, managed by SC Capital Partners in a July 9 closed session.
Mr. Coaker also announced at the meeting that the board approved in closed session on Aug. 13 a $75 million commitment to Energy Spectrum Partners VII.
At Wednesday's meeting, the pension fund committed up to $25 million to HealthCare Royalty Partners III, a fund that invests in commercial state health-care royalty contracts from sales of pharmaceutical drugs and medical devices. It also committed up to $50 million to Blackstone Energy Partners II managed by Blackstone Group.
The board also voted to terminate its two global real estate managers, EII Capital Management and CBRE Clarion Securities.
EII Capital managed $98 million for the pension fund, and CBRE Clarion managed $104 million.
Investment consultant Angeles Investment Advisors recommended the terminations. The recommendation said EII recently announced significant turnover in personnel, including the departure of three of the firm's most senior portfolio managers on the global real estate securities portfolio. The resignations included Jim Rehlaender, head of the firm's non-U.S real estate securities, who left to join a competing firm, the recommendation said.
The CBRE Clarion global real estate securities strategy's long-term results have been under benchmark for three- and five-year periods, the recommendation said. The manager was hired in 2008.
“We were happy to have served as a manager for SFERS and valued the relationship, and we were happy that our performance since inception exceeded their benchmark net of fees,” said firm spokesman Pam Barnett in a statement.
Officials at EII could not immediately be reached for comment.
The assets from both managers will be given to BlackRock, adding on to an existing core real estate allocation. The reallocation of funds will be a placeholder until a longer-term investment is found.
