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State of Maryland
The Maryland State Retirement and Pension System runs $65.5B for over 411,000 state workers and retirees, led by CIO David Strazza.
State of Maryland
The Maryland State Retirement and Pension System (MSRPS) was founded in 1970 to consolidate the state's retirement plans and now serves over 411,000 active members, retirees, and beneficiaries. State Treasurer Dereck E. Davis chairs the Board of Trustees, but day-to-day investment strategy is directed by Chief Investment Officer David Strazza and a lean internal team that oversees a portfolio heavily weighted toward global public equities, fixed income, and a substantial alternatives program. The wealth origin is straightforward: mandatory pre-tax contributions from state workers and their employers, pooled across more than a dozen separate systems including the Teachers' Pension System, Employees' Pension System, and Law Enforcement Officers' Pension System. MSRPS allocates approximately 20-25% of its portfolio to private markets, spanning real estate, private equity, private credit, infrastructure, and real assets. The system is a significant limited partner and co-investor, preferring direct relationships with established managers; known commitments include funds managed by Blackstone, KKR, and TPG, as well as sector-specific vehicles in healthcare and technology (per meeting minutes, 2023-2024). A dedicated real estate portfolio targets core and value-add properties across the United States, with holdings in multifamily, industrial, and office sectors. The fund's liquidity is managed conservatively, with an explicit target to cover benefit payments without forced selling during downturns. A small but strategic allocation to hedge funds and absolute-return strategies is used to dampen portfolio volatility, while an emerging commitment to infrastructure has included allocations to renewable energy and transportation assets, reflecting a federal-adjacent procurement sensibility. As of fiscal 2023, the system reported assets exceeding $65 billion, a figure that reflects both market recovery and steady contribution flows. Investment staff operate from Baltimore, with no satellite offices. Adjacent structures include the Maryland Teachers and State Employees Supplemental Retirement Plans, which offer defined-contribution options managed separately by recordkeepers. The system publishes quarterly performance reports and monthly Board meeting transcripts — an unusual transparency practice among large state pension funds. In March 2024, the Board approved a new pacing plan for private equity that will increase target commitment volumes to maintain the strategic allocation range into 2025 (per Board meeting minutes, March 2024). What distinguishes MSRPS from its peers is a governance structure that blends political accountability with professional investment delegation. The Board includes elected officials and union representatives, but the Chief Investment Officer retains authority over manager selection and tactical asset allocation within Board-approved ranges. This hybrid model has produced consistently lower fee drag versus many peer systems, as the fund sources a meaningful share of its private-market exposure through separately managed accounts and co-investments alongside large GPs — a direct-sourcing effort that mirrors the approach of Canadian pension giants but operates within the constraints of a state government's procurement culture.
General information
Firm type
Pension Fund
Year founded
1970
AUM
$65.5B (per Maryland State Retirement and Pension System, 2024)
Location
Region
North America
Country
United States
City
Baltimore
Corporate office
Baltimore, MD, United States
Principals
Dereck E. Davis
State Treasurer
David A. Strazza
Chief Investment Officer
Sector focus
Frequently asked questions
Who runs investment decisions at the Maryland State Retirement and Pension System?
Chief Investment Officer David Strazza leads the internal investment team and has authority over manager selection and tactical asset allocation, subject to Board-approved policy ranges. The Board of Trustees, chaired by State Treasurer Dereck E. Davis, sets the strategic asset allocation and reviews performance quarterly. The division of responsibility gives Strazza's team meaningful discretion over pacing and co-investment decisions.
How does the Maryland retirement system source private-market deal flow?
The system relies primarily on direct relationships with general partners, built through long-term fund commitments. It also pursues co-investment opportunities alongside existing managers and allocates to separately managed accounts with select firms to reduce fee drag. This approach requires a lean but experienced internal team capable of evaluating individual deals, not just fund-level commitments.
What is MSRPS's allocation to alternatives, and which asset classes does it include?
The system targets roughly 20-25% of total assets to private markets, including real estate, private equity, private credit, infrastructure, and real assets. A smaller allocation to hedge funds and absolute-return strategies is used for diversification. The private equity program spans buyout, growth equity, and select venture funds, while the real estate portfolio focuses on core and value-add properties nationwide.
Does the system participate in fund commitments or only direct deals?
Both. The majority of private-market exposure comes through traditional fund commitments to major general partners, but the system also co-invests directly alongside those managers and uses separately managed accounts to lower fees. Direct co-investment volume typically scales with overall commitment activity, as the team evaluates opportunities presented by existing fund relationships.
How is the Maryland system's funded status relative to peers?
As of its most recent actuarial valuation, the system remains well-funded compared to many large state plans, reflecting disciplined contribution policies and sustained investment returns over the past decade. The Board's transparency practices — including published monthly meeting transcripts — allow external observers to track the funding trajectory and assumptions as they evolve.
Does the State of Maryland's pension system have a separate philanthropy or foundation arm?
No. The system is solely a public pension fund and does not operate a philanthropic foundation. It is distinct from the Maryland Supplemental Retirement Plans, which offer defined-contribution options managed by third-party recordkeepers for state employees who elect additional voluntary savings.
What is the known posture on co-investments alongside external GPs?
Co-investment is an intentional component of the private-market strategy, designed to reduce blended fee costs and increase exposure to high-conviction assets. The team evaluates co-investments presented by existing fund managers and has the internal capacity to underwrite them independently, though the pace varies with market conditions and Board-approved pacing targets.
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