SFERS Joins Blackstone Infra Secondaries Fundraising - InforCapital

The San Francisco Employees’ Retirement System (SFERS) has committed $75 million of capital to Blackstone’s latest infrastructure secondaries fund, reinforcing the pension fund’s appetite for real assets and alternative strategies in the private markets.

The commitment to Strategic Partners Infrastructure III was approved during a July investment committee meeting, with the fund aiming to raise up to $3 billion in total.

Managed by Blackstone Strategic Partners, one of the world’s largest investors in secondaries, the fund targets mature infrastructure assets through secondary purchases of limited partner interests and direct stakes, primarily in energy, transportation, digital infrastructure, and utilities.

The fund is Blackstone’s third dedicated infrastructure secondaries vehicle and follows its 2021 predecessor, which raised more than $1.7 billion. The new fund reflects strong investor interest in secondaries amid ongoing market volatility and extended holding periods across core infrastructure funds.

SFERS, which manages more than $34 billion in assets, has significantly increased its allocations to real assets, private equity, and credit over the last five years. Its latest infrastructure move adds to a diversified portfolio that includes direct investments and co-investments across global energy and mobility platforms.

Blackstone continues to expand its infrastructure platform under its Strategic Partners division, which manages over $67 billion in total secondary assets. The firm has been actively buying stakes in existing infrastructure funds, including those managed by Brookfield, Macquarie, and Kohlberg Kravis Roberts.

Infrastructure secondaries are gaining momentum as investors seek liquidity solutions and portfolio diversification amid higher-for-longer interest rates and slower exit timelines in primary markets.