Investors - SEPTEMBER 11, 2015

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San Francisco commits $100m to real estate

by Zoë Wolff

The $20 billion San Francisco City & County Employees’ Retirement System has committed up to $100 million to Cerberus Institutional Real Estate Partners IV, according to meeting documents.

The fund, sponsored by Cerberus Capital Management, is targeting $1.5 billion in equity commitments and will focus on distressed real estate investments in North America and Western Europe. The fund has targeted an internal rate of return of 17 percent to 20 percent gross and 14 percent to 17 percent net. Cerberus will co-invest 1.5 percent of commitments, up to $30 million.

SFERS believes the commitment to this fund will increase its exposure to real estate globally and to strategies that target higher risk-adjusted returns. Prior to this commitment, more than 50 percent of the pension fund’s real estate portfolio was made up of core assets and more than 80 percent was in the United States.

This is the pension fund’s first investment with Cerb

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