San Francisco Employees’ Retirement System (SFERS) is investing $125m (€105m) in North American real estate and infrastructure funds managed by Gaw Capital Partners and Stonepeak Infrastructure Partners, respectively.
The pension fund has approved a $50m commitment to Gaw Capital’s third US value-add fund and $75m to Stonepeak’s third infrastructure fund, according to a board meeting report.
Hong Kong-based Gaw Capital, which did not respond to a request for comment, held a first close for its US Value Add Fund III last month with total commitments of $250m, including the $50m from SFERS.
Gaw Capital is seeking to raise $400m in total next year, according to sources that track capital raising.
The fund will invest in US office and hotel assets, targeting a net internal rate of return of between 14% and 17%.
As previously reported by IPE Real Assets, Stonepeak is aiming to raise $5bn for Stonepeak Infrastructure Fund III, which will invest in large infrastructure projects in North America.
San Francisco, which is hiring Stonepeak for the first time, expects to commit $50m to the fund and a further $25m for co-investments.