Maryland SRPS Partners with Barings for $250M Real Assets Program 

The Maryland State Retirement and Pension System (SRPS) has partnered with global asset manager Barings to launch a $250 million real assets program targeting lower-middle-market direct deals and emerging managers, as announced by SRPS CIO Andrew Palmer. The initiative includes a $50 million allocation dedicated to Maryland-based emerging managers and in-state investments. 

The partnership establishes the Terrapin Middle Market Infrastructure Fund, a closed-end, fund-of-one vehicle focusing on energy transition, digital infrastructure, transportation, and the circular economy. While primarily targeting North America, the fund will allocate a small portion to Europe. 

“What makes this arrangement especially meaningful is that it’s a fund-of-one,” said Palmer. “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.”   

Barings’ diversified alternative equity group will manage the Terrapin Fund, extending beyond portfolio management to source local investments. Barings has a proven track record with similar state-focused initiatives, such as the Alaska Future Fund and the Michigan Small Emerging Manager Program.  

“Traditionally, most capital has flowed to the largest asset managers, but SRPS recognizes the growing opportunity and value in the small and middle market space,” said Mina Pacheco Nazemi, head of Barings’ diversified alternative equity team.   

SRPS, managing $69 billion, currently allocates 5% to natural resources and infrastructure, with the program achieving over 12% returns in 2024.