San Francisco City & County Employees' Retirement System disclosed commitments and investments totaling $235 million in a report from CIO William J. Coaker Jr. for its upcoming board meeting Wednesday.
Within its private credit asset class, the $25.9 billion pension fund committed $75 million to SSG Secured Lending Opportunities III, a direct lending fund managed by Ares SSG, and $50 million to Blackstone Real Estate Debt Strategies IV, a real estate debt fund managed by Blackstone Group.
As of June 30, the actual allocation to private credit was 4.9%.
Within private equity, SFERS committed $50 million each to to K5 Private Investors, a middle-market buyout fund managed by K1 Investment Management, and venture capital fund Institutional Venture Partners XVII.
As of June 30, the actual allocation to private equity was 21.5%.
Within its absolute return asset class, the pension fund made an additional direct investment of $10 million in hedge fund Boyu Capital U.S. Fund.
The investment, which closed on June 1, was made through San Francisco Absolute Return Investors II, a limited partnership between SFERS and Blackstone Alternative Asset Management. The pension fund originally invested $20 million in February 2018.
As of June 30, the actual allocation to absolute return was 14%.
Separately, the report shows SFERS' preliminary return for the fiscal year ended June 30 was 2.19%. Final results from commingled funds and private markets are still pending, but the report says the overall return, which should be finalized in mid-August, is projected to be 2% to 2.25%.
Public equities have a preliminary return of 7.57% for the fiscal year vs. its benchmark of 1.17%, private equity returned about 5.97% and fixed income returned 4.22%.
Real assets lost an estimated 5.43% for the fiscal year ended June 30, while absolute return had an estimated loss of 5.09% and private credit had an estimated loss of 1.61%.
As of June 30, public equities, real assets and fixed income had actual allocations of 34.4%, 15% and 8.3%, respectively.
Final fiscal-year returns will be reported at the Sept. 8 board meeting, according to the report. SFERS returned a net 8.2% for the fiscal year ended June 30, 2019.
