Maryland Pension, Barings Form Partnership for Infrastructure, Emerging Managers

The Maryland State Retirement and Pension System announced on Wednesday a $250 million strategic partnership with asset manager Barings LLC that will focus on lower-middle-market deals within real assets and with emerging managers.

The partnership will see the creation of the Terrapin Middle Market Infrastructure Fund, which will invest specifically in lower-middle-market and middle-market opportunities within energy transition, digital infrastructure, transportation and the circular economy.

The fund will also dedicate $50 million to infrastructure and real asset deals in Maryland and with emerging managers in the state. Barings has run similar programs in other states: the Alaska Future Fund sponsored by the Alaska Permanent Fund Corporation and the Michigan Small Emerging Manager program with the State of Michigan Retirement System.

“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,” said Andrew Palmer, the CIO of Maryland SRPS, in a statement. “This is a focused, collaborative effort between SRPS and Barings, aligned on a common goal.”

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Barings’ diversified alternative equity group will manage the Terrapin fund. The manager has $442 billion in assets under management.

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

SRPS managed $69.527 billion as of December 31, 2024, and manages the retirement benefits for nearly 412,000 members.