San Francisco City & County Employees allocates $380 million to alternatives

San Francisco City & County Employees' Retirement System announced commitments and investments totaling $380 million to alternative investment funds in a report from Chief Investment Officer William J. Coaker Jr. for the upcoming board meeting Wednesday.

For the $24.7 billion pension fund's real assets asset class, SFERS committed $100 million to Blackstone Real Estate Partners IX, a commingled real estate fund managed by Blackstone Group, and $40 million to Kimmeridge Energy Net Profits Interest Fund V, a natural resources fund.

As of Jan. 31, the actual allocation to real assets was 16%.

Within private credit, SFERS committed $75 million to Fortress Credit Opportunities Fund V (A) and $50 million to Fortress Lending Fund I (A), both private credit funds managed by Fortress Investment Group.

As of Jan. 31, the actual allocation to private credit was 2.4%.

In private equity, the pension fund committed $40 million to LAV Biosciences Fund V, a venture capital fund managed by Lilly Asia Ventures, and $25 million to Eclipse Fund III, a venture capital fund managed by Eclipse Ventures.

As of Jan. 31, the actual allocation to private equity was 20%.

In absolute return, SFERS made an additional investment of $50 million in BFAM Asian Opportunities Fund, a multistrategy hedge fund managed by BFAM Partners. The investment, which closed Jan. 1, was made through San Francisco Absolute Return Investors II, a limited partnership between SFERS and Blackstone Alternative Asset Management. The pension plan originally invested $100 million in the fund in April.

As of Jan. 31, the actual allocation to absolute return was 12.9%.