By Staff
The $69.5B Maryland State Retirement and Pension System (SRPS) is partnering with global asset manager Barings to launch a $250M real assets program that will include a dedicated $50M allocation to in-state investments and Maryland-based emerging managers.
Andrew Palmer, SRPS’ chief investment officer, announced the venture at the pension plan’s most recent board meeting, noting the partnership will see the creation of the Terrapin Middle Market Infrastructure Fund, a closed-ended, fund-of-one vehicle. The fund will focus on investments targeting lower middle-market and middle-market opportunities across sectors such as energy transition, digital infrastructure, transportation, and the circular economy.
“What makes this arrangement especially meaningful is that it’s a fund-of-one,” he said. “We’re not in a pooled investment with multiple stakeholders who may have differing objectives. This is a focused, collaborative effort between SRPS and Barings, aligned on a common goal.”
The fund will focus primarily on North America; however, a dedicated portion of the investment is reserved for Maryland-based infrastructure assets and managers. A modest allocation will be directed toward Europe.
In a press release, Mina Pacheco Nazemi, head of Barings’ Diversified Alternative Equity team noted that most capital has typically flowed to the largest asset managers. Through the joint program, the SRPS “recognizes the growing opportunity and value in the small and middle market space,” she added.
Barings has helped launched similar state-focused programs, including the $100M Alaska Future Fund and the $300M Michigan Small Emerging Manager Program.
