San Francisco Employees’ Retirement System (SFERS) has expanded its real assets portfolio with two new fund commitments totalling $130m (€121.2m), according to a board meeting document.
The pension fund has committed $70m to Milestone Group’s Milestone Real Estate Investors VI and placed $60m into SDC Digital Infrastructure Opportunity Fund IV, a value-add fund managed by SDC Capital Partners.
According to SEC filing the Milestone fund is seeking to raise $1bn. Milestone raised $750m for the previous fund in the series which closed in May 2021.
According to sources, the latest fund, with leverage, is expected to have an investment firepower of around $2.7bn to invest in value-add US apartments.
The fund’s investment strategy includes acquiring existing assets, improving underperforming newly built properties, and participating in recapitalisations of existing partnerships.
SDC Capital raised $1.5bn for the previous fund in the series which closed in March 2022.
The latest SDC Capital fund will target value-add investments across the digital infrastructure sector, with potential opportunities in data centres, fibre networks, and wireless infrastructure.
SDC Capital did not respond to a request for comment.
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