For immediate release:
April 30, 2025  

Contact: Katherine Morris
kmorris@sra.state.md.us

BALTIMORE, MD — At this past month’s Maryland State Retirement and Pension System (SRPS) board meeting, Chief Investment Officer Andrew Palmer announced a strategic partnership with global asset manager Barings to launch a new $250M real assets program with a focus on the lower middle-market direct deals and emerging managers. The collaboration includes a $50 million allocation dedicated exclusively to in-state investments and Maryland-based emerging managers.

Barings, a global asset management firm overseeing more than $442 billion in assets, brings decades of experience across public and private markets, including fixed income, real assets, and capital solutions. The firm’s long-standing track record and commitment to flexible financing solutions make it a valuable partner for SRPS and its nearly 412,000 members.

“This program is truly one-of-a-kind,” said Mina Pacheco Nazemi, Head of Barings’ Diversified Alternative Equity team. “SRPS is leading the way in infrastructure and real assets by building a strategy with intentionality — focused on generating strong returns while addressing key gaps in the market. 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. They should be commended for their forward-thinking and innovative approach to investment strategy.”

At the heart of the partnership is the creation of the Terrapin Middle Market Infrastructure Fund (“The Terrapin Fund”), a closed-end, 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. While the fund will focus primarily on North America, a modest allocation will be directed toward Europe.

Significantly, a dedicated portion of the investment is reserved for Maryland-based infrastructure assets and managers.

“This means our agency is not just investing in the broader market — we’re backing Maryland businesses and homegrown talent,” said Martin Noven, Executive Director of SRPS. “It’s a by-Marylanders, for-Marylanders approach that reflects our confidence in the state’s capabilities.”

Andrew Palmer, Chief Investment Officer for SRPS, who led the initiative, emphasized the unique structure of the fund. “What makes this arrangement especially meaningful is that it’s a fund-of-one. 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.”

Palmer also highlighted how the strategy aligns with the system’s Terra Maria Emerging Manager Program, which seeks to expand opportunities for early-stage funds with strong potential for success. “Barings stood out among the firms we evaluated. Their experience with emerging managers and middle-market infrastructure gave us confidence in their ability to understand and advance our vision,” he said.

The Barings Diversified Alternative Equity Group will manage the Terrapin Fund, but Barings’ role extends well beyond portfolio management.

“The Barings team is rolling up their sleeves like the rest of us,” said Dereck E. Davis, State Treasurer and Chair of the SRPS Board of Trustees. “They’re not just investing—they’re collaborating to identify opportunities, build relationships, and contribute meaningfully to Maryland’s investment ecosystem.”

At a time when many Americans are concerned about the current economic volatility surrounding the national discussion of state pensions, the Maryland State Retirement and Pension System offers its members reassurance through this meticulously structured partnership. Comptroller of Maryland and Vice-Chair of the SRPS Board of Trustees, Brooke Lierman, emphasized the work that goes hand-in-hand with this accomplishment.

“Responsible fiduciary oversight means more than managing risk—it means actively pursuing strong opportunities on behalf of Marylanders,” said Lierman. “Barings brings the experience and discipline we expect from our partners. This collaboration is about results.”

Barings has previously demonstrated success with similar state-focused programs, including the Alaska Future Fund and the Michigan Small Emerging Manager Program.

“Those initiatives are a point of pride,” said Pacheco Nazemi. “SRPS recognized our ability to deliver value and drive results in regionally targeted programs. We’re excited to bring that same level of commitment to Maryland.”

Additional information on the Terrapin Middle Market Infrastructure Fund will soon be available on Maryland SRPS and Barings websites.

The Maryland State Retirement and Pension System is charged with the fiduciary responsibility for properly administering the retirement and pension allowances of nearly 168,000 retirees and beneficiaries as well as the future benefits for more than 245,000 active and former members. These groups include state government employees, teachers, law enforcement personnel, legislators, judges and local government employees and fire fighters whose employers have elected to participate in the System.

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