San Francisco Pension Adds $110M Real Assets Lending, VC

The City and County of San Francisco Employees’ Retirement System has deployed $110 million in new private markets commitments, adding Asia-focused real assets lending and Bay Area venture capital to a portfolio that spans $3.3 billion in private credit and a $10.6 billion private equity program, according to the $40 billion pension’s latest meeting disclosures.

The largest allocations went to PAG, an Asia Pacific-focused alternative asset manager with which SFERS has now made six and seven investments within its private credit program. The PAG Loan Fund VI, a direct lending strategy targeting real assets across the Asia Pacific region, received a $40 million commitment. An additional $40 million was directed to the PAL VI Co-Investment Fund, a sidecar vehicle alongside the flagship strategy. The predecessor fund raised $2.6 billion in 2022, establishing itself as the largest lending strategy in Asia at the time of its close.

Within the venture capital sleeve of SFERS’ broader private equity portfolio, the pension committed $17 million to Eclipse Fund VI and $13 million to Eclipse Early Growth Fund III under delegated authority. The two vehicles closed in early April with a combined $1.3 billion in capital.

Bay Area-based Eclipse focuses on entrepreneurs building companies across the physical economy, with particular emphasis on manufacturing, supply chain and logistics, energy, transportation, and defense — sectors that have attracted renewed institutional interest amid domestic industrial policy tailwinds and supply chain realignment.