In her Monthly Investor Snapshot delivered at the Sept. 15 San Francisco City and County Employees’ Retirement System’s (SFERS) board of trustees meeting, CEO/CIO Alison Romano enumerated $545 million in investment allocations to real asset and credit funds.
The allocations over July and August were the result of commitments approved by the board earlier this year.
Romano reported that SFERS made a $40 million commitment to the Annex Fund, which is managed by Vison Ridge Partners, closed on July 18. The commitment is classified as an infrastructure investment within the system’s real assets portfolio and is SFERS’ third investment with Vision Ridge Partners.
At its meeting on July 14, the board approved an investment of up to $70 million in GCP SecureSpace Property Partners LP. SFERS’ $65 million commitment to the fund closed on Aug. 5. The system’s investment is classified as a real estate investment within its real assets portfolio and is SFERS’ first investment with GCP.
Also on July 14, the board approved an investment of up to $70 million in Arrow Credit Opportunities II USD Feeder SCSp. They system closed a $70 million allocation to the fund on August 5. The investment, which is SFERS’s first with Arrow Global, falls within the system’s credit opportunities category within its private credit portfolio.
At the same meeting, the board approved an investment of up to $75 million to JEN 8 LP. SFERS’ $70 million commitment to JEN 8 LP closed on Aug. 18. SFERS classified the fund as a real estate investment within the real assets portfolio and is SFERS’ third investment with JEN Partners
And last, at its meeting on June 9, the board approved an investment of up to $300 million in Presidio Loan Fund, LP, a vehicle managed by HPS Investment Partners. SFERS’ $300 million investment in Presidio Loan Fund, LP closed on Aug. 8. This investment is classified as a direct lending investment within SFERS’ private credit portfolio. SFERS has invested in four funds managed by HPS, including Presidio Loan Fund, LP, and this is SFERS’ second investment in Presidio Loan Fund, LP.
As of Aug 31, SFERS’ overall asset allocation was as follows: growth assets 62.2%, which includes 31.1% in PE, with a 23% policy target; 25% in diversifying assets, which includes real assets and absolute return, with 20% policy target; income asset 9.7%, which includes liquid credit and private credit, with a 15% policy target; capital preservation 4.5%, which includes Treasuries, with an 8% policy target; and the balance is in cash and cash equivalents.
