Maryland State Retirement and Pension System (SRPS) has become a seed investor for an alternative real estate fund managed by Clarion Partners.
The pension fund disclosed in a board meeting document that it committed $125m (€108.8m) to the Clarion Alternatives Sectors Fund.
The commitment is part of $1bn in total seed capital for the open-ended fund, granting Maryland a discounted asset management fee in perpetuity.
During the fund’s initial seeding phase, capital will be invested into build-to-rent single-family housing, industrial outdoor storage and senior housing.
Over time, the portfolio is expected to diversify into other sectors, including alternative housing, healthcare and broader industrial or storage properties.
Clarion does not comment on capital raises that are still open for new commitments from limited partners.
As of year-end 2025, the pension fund’s real estate portfolio was valued at $6.9bn, accounting for 8.9% of its $77.4bn in total plan assets.
Following a recent asset allocation review, Maryland SRPS has decided to lower its target for real estate from 10% to 9%, according to the board meeting document.
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