San Francisco Employees’ Retirement System (SFERS) has approved capital commitments totalling $135 million to funds managed by Chinese investment firm Hillhouse Capital Management and Asia and US-focused DCM Ventures.
The pension fund allocated $100 million to Hillhouse Fund IV and $35 million to DCM IX, according to a report shared by SFERS chief investment officer William Coaker during a board meeting on Wednesday.
Hillhouse Fund IV is reportedly raising about $8 billion – the investment firm’s largest-ever capital pool – in spite of having commitments of over $10 billion. Last month, the Texas County & District Retirement System (TCDRS) committed $85 million to the fund.
Hillhouse Capital is known as one of the most active buyout firms in Asia. It partnered with Hopu Investment Management to make the largest acquisition in Asia by buying Singaporean warehouse operator Global Logistic Properties Ltd for S$16 billion ($12 billion) last year.
Six months ago, it also co-invested with Sequoia China, Tencent and other Chinese investors in a $2.5-billion funding round in JD Logistics.
DCM IX, the ninth flagship fund of venture capital firm DCM Ventures, is seeking to raise up to $750 million. The fund will be DCM’s largest fund ever. Its flagship fifth and eighth funds had raised over $500 million each.
If it achieves its target for the ninth fund, DCM will have raised more than $4 billion across its flagship funds and three other venture funds since its inception in 1996.
Other investments by SFERS
During its board meeting on August 8, SFERS also disclosed plans to invest $100 million in hedge fund BeaconLight Domestic Fund, $50 million in North America-focused buyout fund K4 Private Investors, and £40 million in Europe-focused real estate investment fund Kitty Hawk Capital Partners V.
SFERS said that it gained 10.04 per cent from private equity and 9.42 per cent from real assets — the strongest performers in its portfolio — in the first seven months of this year.
Previously, SFERS had in July approved an allocation totalling $430 million to three funds targeting Asian and emerging markets – Fortress Japan Opportunity Fund IV, Long Hill Capital Venture Partners 2, and Cartica’s Emerging Markets Fund.
In May, it had disclosed investments totalling $160 million in funds managed by Hong Kong’s BFAM Partners, SB China Venture Capital (SBCVC) and Australia and New Zealand-focused BGH Capital.