The state Employees’ Retirement System, which oversees more than $16 billion in assets in Hawaii’s largest public pension portfolio, has approved an additional $25 million commit­ment to its third Hawaii Targeted Investment Program fund. That brings ERS’ total commitment to the fund to $75 million.

The fund invests in venture and growth capital with a mandate to look specifically for investments in Hawaii through alternative asset specialist Stafford Capital Partners.

HiTIP’s purpose is to produce competitive private equity returns for ERS through investments in emerging growth businesses that sell their goods or services into markets for which national or international competition exists, with specific emphasis on Hawaii. HiTIP, launched in 2007, was created by the state Legislature based on the Hawaii Innovation Initiative to diversify and transform the state’s economy. HiTIP invests in local venture capital firms as well as venture capital firms that have or look to have some part of their portfolio companies based in Hawaii.

The program to date has made commitments to 21 underlying investment funds, which have, in turn, reviewed over 650 Hawaii-based companies for potential investment and completed investments into nine companies operating in or that were started in Hawaii.

“The Hawaii innovation ecosystem has benefited greatly from these foundational investments made on behalf of the ERS,” Executive Director Thom Williams said in a news release Thursday.

The ERS Board of Trustees voted at its May 12 board meeting to increase investments in Hawaii-­based industries and startups through its unique targeted program.

“The great thing about technology and innovation is that you can build it anywhere — so why not here at home?” ERS Chief Investment Officer Elizabeth Burton said. “Innovation typically is job creative not destructive. Throughout history, it creates more jobs than it displaces. … We are in a fortunate position to finance innovation for the betterment of the people of Hawaii.”

The ERS pension fund provides retirement, disability and survivor benefits to nearly 126,000 recipients.