San Francisco pension restructures alternatives

The $15bn pension fund, which currently has $2.8bn committed to private equity, is splitting up its alternatives asset class and looking for managers to run the separate strategies.

The San Francisco Employees’ Retirement System is splitting the role of its alternatives investment portfolio manager into two positions, one handling private equity and the other venture capital.

The pension fund is searching for five senior portfolio managers for its private equity, venture capital, fixed income, public equity and real estate asset class divisions. SFERS previously maintained four portfolio manager positions.

“A couple years ago, we had a consultant come in and look at our employment structure,” SFERS deputy director for investments David Kushner told Private Equity International. “The only significant change is to split alternatives into private equity and venture.”

Although two of the positions are currently filled, there is an open search for managers for all five asset classes, Kushner said.

The $15 billion pension fund targets a 14 percent asset allocation to private equity. SFERS Board of Directors is expected to vote on a new asset allocation investment strategy in September, Kushner said.

SFERS has $2.8 billion committed to private equity across over 50 fund managers and 120 individual partnership investments, according to the pension fund’s job posting for the senior portfolio manager for private equity position.