San Francisco City & County Employees' Retirement System disclosed eight commitments and investments totaling $655 million in a report from Chief Investment Officer William J. Coaker Jr. for the upcoming board meeting Wednesday.
The $27.7 billion pension fund made an additional investment of $200 million in a multistrategy hedge fund managed by Elliott Associates. The investment was made through San Francisco Absolute Return Investors II, a limited partnership between SFERS and Blackstone Alternative Asset Management.
SFERS originally invested $100 million in 2017; the report notes this is the "first investment with Elliott via share class B of SFARI II."
As of Dec. 31, the actual allocation to absolute return was 13.8%.
SFERS hired Matrix Capital Management to manage $100 million, which the pension fund classified as an opportunistic investment within its public equity portfolio. It is SFERS' first investment with Matrix Capital. The report also notes the pension fund expects to invest an additional $100 million with Matrix in the first quarter.
As of Dec. 31, the actual allocation to public equities was 34.4%.
Separately, for its real assets portfolio, SFERS committed $75 million each to Cabot Industrial Value Fund VI, an industrial real estate fund managed by Cabot Properties, and Peppertree Capital Fund VIII, a fund that invests in communication infrastructure companies and is managed by Peppertree Capital Management.
Both commitments are firsts for the pension fund to the respective managers.
As of Dec. 31, the actual allocation to real assets was 16%.
Within its private credit portfolio, SFERS committed $75 million to Castlelake Aviation IV Stable Yield and $25 million to Castlelake Aviation IV Stable Yield Opportunities, both specialty finance funds, and €50 million ($55 million) to MCP Private Capital Fund IV, a private credit fund managed by Metric Capital Partners. All are first-time commitments to the managers for the pension fund.
As of Dec. 31, the actual allocation to private credit was 3.8%.
In private equity, SFERS committed $50 million to Clearlake Capital Partners VI, a special situations fund managed by Clearlake Capital Group. The pension fund previously committed up to $100 million to Clearlake Capital Partners V in 2017.
As of Dec. 31, the actual allocation to private equity was 21.1%.
