Key Takeaways
- • SFERS committed a total of $275M across a hedge fund and a private credit vehicle, according to materials for its December 11 board meeting as reported by Dakota.
- • The pension committed $200M to FGP Redwood Fund (Freestone Grove), of which $125M had been funded as of December 1, with the remaining $75M to be drawn over future disbursements.
- • SFERS closed a $75M investment in Blue Torch Credit Opportunities Fund IV on December 5, following board approval on October 29, its third and largest allocation to Blue Torch's credit opportunities series.
- • As of September 30, SFERS held 8.8% of its $41B portfolio in private credit and 8.7% in hedge funds, both below targets of 10%.
Summary
The San Francisco Employees' Retirement System (SFERS) has committed a combined $275M to a hedge fund and a private credit vehicle, according to materials prepared for the pension's board meeting on December 11, as reported by Dakota.
The largest commitment is $200M to FGP Redwood Fund, also referred to as the Freestone Grove fund. SFERS first committed $100M on March 13, then made a further $100M add-on investment after the first commitment was fulfilled. As of December 1, $125M of the total had been funded, and the pension said it will continue disbursements until the remaining $75M is drawn.
SFERS also closed a $75M investment in Blue Torch Credit Opportunities Fund IV on December 5, after the board approved the commitment on October 29. The materials describe this as the pension's third and largest investment in Blue Torch Capital's credit opportunities series. It previously allocated $65M to Fund III in 2023 and $50M to Fund II in 2020, per Dakota data.
The commitments come against a $41B total portfolio. As of September 30, SFERS had 8.8% of assets in private credit and 8.7% in hedge funds, each below its target weight of 10%. The additions therefore bring both allocations closer to target.
The largest commitment is $200M to FGP Redwood Fund, also referred to as the Freestone Grove fund. SFERS first committed $100M on March 13, then made a further $100M add-on investment after the first commitment was fulfilled. As of December 1, $125M of the total had been funded, and the pension said it will continue disbursements until the remaining $75M is drawn.
SFERS also closed a $75M investment in Blue Torch Credit Opportunities Fund IV on December 5, after the board approved the commitment on October 29. The materials describe this as the pension's third and largest investment in Blue Torch Capital's credit opportunities series. It previously allocated $65M to Fund III in 2023 and $50M to Fund II in 2020, per Dakota data.
The commitments come against a $41B total portfolio. As of September 30, SFERS had 8.8% of assets in private credit and 8.7% in hedge funds, each below its target weight of 10%. The additions therefore bring both allocations closer to target.
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