SFERS invests over $147m to private equity

The system's private equity asset class posted strong returns in Q3.

Institution: San Francisco Employees’ Retirement System
Headquarters: San Francisco, US
AUM: $28.2 billion
Allocation to Alternatives: 26.8%

San Francisco Employees’ Retirement System has agreed to commit $147.5 million to private equity funds at its October meeting, according to an investment report from chief investment officer William Coaker.

Other highlights from SFERS’ annual investment plan include:

  • The system invested $50 million to OrbiMed Private Investments VIII, targeting $1.4 billion. The fund invests in the biotech, life science and healthcare sectors in North America; and $22.5 million to Lead Edge Capital V, which invests in multiple sectors. The pension also committed $25 million to Hillhouse Focused Growth Fund V and up to $50 million to Asia Alternatives Capital Partners VI, which invests in a diverse sectors in Asia-Pacific.
  • The institution has previously invested with Hillhouse Capital Group and Asia Alternatives Management, having committed to Hillhouse Capital fund III and IV, as well as Asia Alternatives Capital Partners IV and V.
  • So far in 2020, SFERS has committed $694 million to private equity, according to the report. The system has made more than $1.6 billion in private market commitments this year.
  • Private equity makes up 22.2 percent of the system’s $28.2 billion portfolio and posted returns of 12.26 percent, as of 30 September 2020. Year-to-date, private equity is up 12.14 percent.
  • SFERS plans to be carbon neutral by 2050 as part of its updated environmental, social and governance policy, according to the report.
  • At its next meeting this month, the pension will review considerations for asset allocation mixes.

William Coaker has served as SFERS’ CIO since 2014. He previously worked as a senior investment officer at the pension before leaving to work as senior managing director at University of California Office of the CIO, according to LinkedIn.

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