San Antonio Fire & Police pension considers boost to PE target

PE stands to benefit as the system may do away with emerging markets equities.

San Antonio Fire & Police Pension Plan may increase its target allocation to private equity to 9 percent, from 8 percent.

San Antonio Fire’s investment committee discussed raising the PE target at its April 27 meeting. It was not known by press time if the committee approved the new allocation.

Buyouts reviewed board documents from the April 27 meeting.

According to minutes from previous meetings, the $3.9 billion pension’s emerging markets equities bucket has suffered from poor performance, prompting staff and consultant NEPC to recommend eliminating the 6 percent target to the strategy.

This would allow the system to increase its PE target. The proposed changes would also raise targets for US and international equities, board documents said.

If approved, it would be the second year in a row San Antonio Fire upped its target to private equity.

According to Buyouts’ database, San Antonio Fire currently allocates 9.45 percent of its total fund to private equity.

The system approved an $85 million private equity pacing plan at its July 2023 board meeting, board minutes said.

San Antonio Fire committed $20 million to HarbourVest Partners Co-Investment Fund VII in March, according to the Buyouts database.

Earlier this month, another pension made a similar move as California’s San Jose police pension plan approved an increase to its private equity target.