San Francisco City & County Employees’ Retirement System approved three commitments to natural resource funds totaling up to $130 million and two private equity commitments totaling up to $85 million, said board secretary Norm Nickens.
The commitments were all made in closed session of the board, agenda materials show.
The largest natural resources commitment by the $20.9 billion pension fund was up to $100 million to Energy & Minerals Group Fund IV.
Another commitment of up to $20 million to BlueScape Energy Partners’ Clean Grid Holdings fund was also made, as well as a commitment of up to $10 million to Edge Natural Resources’ Four Corners Petroleum II, documents show.
The pension fund’s natural resources portfolio is $2.4 billion.
In private equity, the largest commitment of $25 million to $50 million was made to Harper Asset Holdings, a co-investment with RRJ Capital, an Asian investment firm that focuses on private equity investments in China and Southeast Asia. The investment is classified as an opportunistic investment within the pension fund’s $2.7 billion private equity portfolio.
Another private equity commitment of up to $35 million was made to Atalaya Asset Income Fund III, managed by Atalaya Capital Management.
The agenda materials also said the board hired Bank of New York Mellon as its custodian starting April 1. The board voted on the hire at its October meeting, following an RFP. BNY Mellon replaces Northern Trust, the current custodian.
In addition, the agenda materials show that $250 million was invested Oct. 1 in 12 hedge funds as part of its customized hedge fund-of-funds program with Blackstone Alternative Asset Management. The names of the hedge funds were not disclosed, but the investments are the first in the pension fund’s new hedge fund program. It hired Blackstone in June to manage a $500 million hedge fund of funds and advise on the pension fund’s planned $500 million program for direct investments in hedge funds.