The Arizona State Retirement System (ASRS) has awarded BNP Paribas Asset Management Alts a $600m (£444.7m) significant risk transfer (SRT) investment mandate.

The latest mandate follows a $400m allocation made by ASRS in BNP’s SRT strategy back in April 2024, bringing the US state pension fund’s total commitments to the manager’s SRT book to $1bn.

ASRS said the investment is part of its plans to increase its private credit allocation across the US and Europe.

“The SRT market continues to present an attractive investment opportunity which we find compelling from a risk-return perspective,” stated Al Alaimo, deputy chief investment officer at ASRS.

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According to BNP, the SRT market has continued to grow, with around 40 banks issuing SRTs and a volume of $15bn in the first six months of 2026. More than 70 per cent of this volume came from European banks.

“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,” said Deborah Shire, deputy head of BNP Paribas Asset Management Alts. “As investors seek opportunities beyond direct lending strategies, SRT offers decorrelation and resilience.”

Read more: SRT market boom set for five more years of solid growth

Overall, BNP Paribas Asset Management Alts has been investing in the SRT market for 25 years, with the European alternatives manager having $345bn in assets across real estate, infrastructure, alternative credit and private equity.

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