BNP Paribas AM wins additional US$600m from pension fund

BNP Paribas Asset Management Alts has secured a further US$600 million investment mandate from the Arizona State Retirement System (ASRS) for its significant risk transfer (SRT) strategy, taking the US pension fund's total commitment to US$1 billion.

The latest allocation follows a US$400 million investment in the strategy in April 2024 and forms part of ASRS's broader approach to diversified private market credit investments across the US and Europe.

SRT investments provide investors with exposure to banks' core performing assets while providing them an efficient way to manage their regulatory capital requirements, according to BNP Paribas Asset Management Alts.

The asset manager has a 25-year track record in SRT investing, having completed nearly 150 transactions.

BNP Paribas Asset Management alts deputy head Deborah Shire said the additional mandate reflected the continued development of the SRT market and growing investor interest beyond traditional private credit strategies.

"We are delighted to grow our partnership with ASRS through this additional mandate and thank them for their continued trust in investing for their scheme members," Shire said.

"As investors seek opportunities beyond direct lending strategies, SRT offers decorrelation and resilience."

Shire said around 40 banks issued SRT transactions in the first six months of 2026, with total issuance reaching $15 billon. More than 70% of that volume came from European banks.

ASRS deputy chief investment officer Al Alaimo said the strategy remined attractive from a risk-return perspective and would form part of the pension funds broader credit allocation.

"The SRT market continues to present an attractive investment opportunity which we find compelling from a risk-return perspective," Alaimo said.

"This latest allocation forms an important part of our broader credit asset class portfolio, which is focused on private market investments that we believe could generate returns which achieve our long-term objectives and diversify the total fund."

BNP Paribas Asset Management Alts manages approximately €300 billion across real estate, infrastructures, alternative credit and private equity.

Its parent, BNP Paribas Asset Management, has more than €1.7 trillion in assets under management globally.