Maryland State Retirement & Pension System, Baltimore, disclosed $1.5 billion in alternatives commitments and extended State Street Bank and Trust Co.'s term as its global custodian at its Sept. 19 meeting.
The $65.2 billion pension fund disclosed commitments made from May through September.
In real return, the pension fund committed $200 million to infrastructure fund Global Infrastructure Partners Fund V, and $150 million to Stonepeak Opportunities Fund, a North American middle-market infrastructure fund.
In credit/debt, the system committed $150 million to Gramercy Capital Solutions Fund III, an emerging market private credit fund managed by Gramercy Funds Management; $150 million to specialty finance fund Castlelake Aviation V Stable Yield; $100 million to Highbridge Strategic Credit Fund II, a multistrategy convertible debt managed by Highbridge Capital Management; $100 million to Waterfall Silver Spring Fund, a private asset-backed credit fund managed by Waterfall Asset Management; and $75 million to a co-investment fund associated with healthcare credit fund Hayfin Healthcare Opportunities Fund managed by Hayfin Capital Management. In March, Maryland committed $125 million to the Hayfin fund.
And in private equity, the pension fund committed $136 million to CVC Capital Partners IX, a global buyout fund managed by CVC Capital Partners; $100 million to large-cap buyout fund Hellman & Friedman Capital Partners XI; $100 million to New Mountain Partners VII, a buyout fund managed by New Mountain Capital; $85 million to LLR Equity Partners VII, a buyout fund managed by LLR Partners; and $103 million to various co-investments. Golden declined to provide specifics about the co-investments.
As of June 30, the system's actual allocation was 30.2% public equities (28.1% target), 21.9% private equity (21.9% target), 17.1% rate-sensitive assets (19.5% target), 10.5% real estate (10.5% target), 8.7% credit (9% target), 5.9% absolute return (6% target), 5% natural resources and infrastructure (5% target), and the rest in cash.
Separately, the fund's Board of Trustees approved a one-year extension for State Street, effective March 1, 2024, through Feb. 28, 2025, spokesman Michael D. Golden said. Maryland initially hired State Street to a five-year term in 2018 and approved an initial one-year extension last year, board documents show. The system pays State Street a flat fee of $2.7 million each year, according to board documents.