Barings and North Carolina Investment Authority (NCIA) have broadened their partnership with a $2.1bn (£1.6bn) mandate for Barings’ real estate debt and capital solutions strategies.

For more than 10 years, Barings has been the asset manager for North Carolina Retirement Systems, whose assets are now invested by NCIA.

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Under the expanded partnership, the alternative asset manager will deploy its broad real estate debt capabilities to invest $1bn in loans secured by “institutional-quality” commercial real estate across North America and Europe, while an additional $800m has been committed to Barings’ commercial mortgage-backed securities (CMBS) strategy.

Also included in the mandate is $300m in committed capital for Barings’ Capital Solutions strategy, which originates customised financings for corporate and non-corporate issuers across the capital structure, with a focus on secured debt.

“North Carolina has been an important partner to Barings for more than a decade,” said Mike Freno, chair, president, and chief executive of Barings. “Together, we are focused on solving complex investment challenges and supporting long-term outcomes for North Carolina’s public employees.”

The North Carolina pension fund totaled $149bn as of 30 June, and is managed by NCIA on behalf of its 875,000 active and retired public employees, including teachers, police officers, firefighters and public servants.

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North Carolina treasurer and NCIA board chair Brad Briner, added that “broadening the scope” of its partnership with Barings will help ensure the stability and security of its pension plan.

“We’re grateful for the opportunity to deepen our collaboration with NCIA’s talented team on a mandate of this scale and complexity,” said Graham Seagraves, head of North American institutional and consultant relations at Barings. “This partnership brings together multiple capabilities to create a solution that advances the Retirement Systems’ long-term objectives amid a dynamic market environment.”

The $502bn global alternative asset manager partners with institutional, insurance and wealth clients and has capabilities spanning credit, real assets, capital solutions and emerging markets.

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