Hong Kong-headquartered alternative asset management firm SSG Capital Management has secured a $75-million capital commitment from US pension fund San Francisco Employees’ Retirement System (SFERS) for its latest closed-end fund, SSG Secured Lending Opportunities III.
The fund was launched in April and will focus on lending to firms in the Asia-Pacific region. SSG raised $325 million in 2015 for Fund I and $815 million in 2017 for Fund II. The firm did not specify a target for the latest fund.
The commitment to SSG’s latest fund was part of the latest commitments that the $25.9-billion pension fund approved recently. SFERS also announced commitments of $50 million each to IVP XVII, the newest fund of late-stage venture capital firm IVP, and another $50 million to Blackstone Real Estate Debt Strategies IV.
SFERS becomes the second US pension fund to commit capital to SSG Secured Lending Opportunities III. Last month, Virginia Retirement System approved a $300 million investment in the fund.
Established in 2009, SSG Capital was founded by former Lehman Brothers Asia Special Situations Group executives Edwin Wong, Shyam Maheshwari, and Andreas Vourloumis.
In January this year, US-based private equity firm Ares Management announced it was acquiring a controlling interest in SSG Capital as a springboard for its Asia expansion.
Headquartered in Hong Kong with offices across Asia, SSG manages private credit and special situations funds totalling approximately $6.2 billion as of September 30, 2019.
SSG anticipates increased demand for private financing transactions with enhanced pricing and compelling risk-reward profiles, as well as an increase in the supply of performing or non-performing assets sold by financial institutions.
The investment firm held the final close for its fifth flagship fund at $1.9 billion and raised an additional $825 million for a sidecar fund in December 2019. Like its predecessor funds, SSG Capital Partners V invests principally in special situations and distressed investments in the Asia Pacific, with a focus on China, India, and Southeast Asia.
SFERS, meanwhile, has made several commitments to Asia-focused vehicles, including a $50 million commitment to C-Bridge Healthcare Fund IV of China’s healthcare-focused firm C-Bridge Capital. It also committed $50 million to PAG’s third special situations fund.
The US pension fund committed some $161 million across China’s CMC Capital Partners III, Lightspeed China Partners, and Fifth Wall Ventures. SFERS has also backed Asia Alternatives’ San Francisco Asia Investors, Gaw Capital’s Gateway Real Estate Fund VI, ARCH Capital Asian Partners IV, and GGV Capital funds.