This paper presents the design, construction, and testing of a magnetic particle relaxometer (MPR) to assess magnetic nanoparticle response to dynamic magnetic fields while subjected to a bias field. The designed MPR can characterize magnetic particles for use as tracers in magnetic particle imaging (MPI), with the variation of an applied bias field emulating the scan of the MPI field free point. The system applies a high-frequency time-varying excitation field (up to 45 mT at 30 kHz), while slowly ramping a bias field (±100 mT in 1 s). The time-resolved response of the sample is measured using an inductive sensing coil system, made of a pick-up coil and a rotating and translating balancing coil to finely cancel the induction feed-through from the excitation field. A post-processing algorithm is presented to extract the tracer response related to the point spread function for MPI applications, and the performance of the MPR is demonstrated using superparamagnetic iron oxide particles (ferucarbotran).