The San Francisco City and County Employees’ Retirement System (SFERS) provides retirement, disability, and survivor benefits to employees of the City and County of San Francisco. With approximately $35 billion in total assets, SFERS is one of the largest municipal pension funds in the United States, serving over 70,000 active and retired members.
Investment Strategy
SFERS maintains a well-diversified investment portfolio across public equities, fixed income, private equity, real estate, infrastructure, private credit, and other alternatives. The Retirement Board sets strategic asset allocation targets informed by asset-liability studies and capital market assumptions. The internal investment team manages the portfolio with support from external managers and consultants.
The alternatives program is a significant component of the total portfolio. Private equity investments span buyout, growth equity, and venture capital strategies across domestic and international markets. SFERS has historically been receptive to venture and technology-focused strategies given its Bay Area location and the Board’s familiarity with the innovation economy. Real estate investments include core, value-add, and opportunistic funds. Infrastructure and private credit allocations provide stable income and portfolio diversification.
SFERS has been a leader among municipal pension funds in incorporating ESG factors into its investment process and maintaining an active emerging and diverse manager program.
How to Approach
Fund managers should contact the SFERS investment staff in San Francisco. The team maintains an active pipeline of manager evaluations and participates in major industry conferences. GPs should present a concise fund summary, audited track record, and clear competitive differentiation. SFERS values diversity in its manager base and has established pathways for emerging and diverse-owned managers.
Frequently Asked Questions
What is SFERS's alternatives allocation?
SFERS allocates approximately 25% of its $35 billion portfolio to alternative investments including private equity, real estate, infrastructure, and private credit. This represents roughly $8.75 billion in alternatives commitments, making SFERS one of the larger municipal pension allocators.
What types of alternative investments does SFERS pursue?
SFERS invests across buyout, growth equity, venture capital, real estate (core through opportunistic), infrastructure, and private credit strategies. The fund has a particular orientation toward technology-related venture and growth given its San Francisco location. Typical commitment sizes range from $50 million to $200 million per fund.
How can GPs engage with SFERS?
GPs should contact the SFERS investment team in San Francisco. The fund has an experienced alternatives staff that evaluates managers through a rigorous due diligence process. SFERS works with investment consultants and is active at industry conferences. The fund values manager diversity and maintains an emerging manager program.
