Barings Closes Third Vintage of European Private Loan Strategy at €7 Billion
Barings, one of the world’s leading investment managers, today announced the successful completion of fundraising of its European Private Loan Fund and associated vehicles, attracting total investable capital of €7 billion.
Barings has garnered interest from a global investor base, a mix of public and private pension funds, insurance companies, sovereign wealth funds and family offices. Barings saw support from both new and existing investors with more than two thirds of commitments raised from investors in prior funds.
The €7 billion raised exceeded Barings’ initial target. The European investment team has deployed €6 billion in the last 18 months across more than 80 transactions, resulting in the third vintage being over 50% invested.
“In these tumultuous times, Barings European Private Debt strategies offer investors exposure to a highly diversified pan-European strategy. Our clear and consistent investment philosophy, disciplined approach, and focus on defensive companies that have a fundamental reason to exist resonated with our clients. We will continue to endeavour to deliver our clients strong performance and consistency in these challenging times,” said Adam Wheeler, Managing Director and Co-Head of Barings Global Private Finance Group.
This successful fundraise brings Barings’ total committed capital in Europe to €12.8 billion with €10 billion invested. “Since joining Barings over 15 years ago, we have completed over 300 private market loan transactions in Europe. We have spent many years creating a leading European Private Debt platform, serving both our investors and private equity customers. Whilst there have been many notable milestones on the way, this fundraising cycle is a clear highlight and is attributed to our team across Europe who have worked hard to make this happen,” said Mark Wilton, Managing Director and Co-Portfolio Manager for Barings European Private Finance Group.
“We firmly believe a disciplined approach and strong credit selection can continue to offer investors attractive, through-the-cycle, risk-adjusted returns. As more investors turn to private credit, scale, relationships and incumbency have become increasingly critical to accessing and evaluating deal flow. At Barings, we believe our local presence in Europe, as well as our ability to leverage our large global team for cross-border deal flow, leaves us well positioned,” said Ian Fowler, Managing Director and Co-Head of Barings Global Private Finance Group. The successful European capital raise follows the $9.5 billion closed in 2021 for the firm’s North American Private Loan Fund II and associated accounts.
With more than 90 investment professionals focused solely on private finance, and a presence across North America, Europe and Asia Pacific, Barings leverages the scale and resources of its team to source private credit investment opportunities across developed markets worldwide. The firm has a long track record in the space, lending to private equity sponsor-backed companies for more than 30 years. As a principal investor for its parent company, Barings also invests its own capital alongside its clients in most transactions. Over the last 12 months, Barings has invested $14 billion globally in private credit.
Barings is a $371+ billion* global investment manager sourcing differentiated opportunities and building long-term portfolios across public and private fixed income, real estate, and specialist equity markets. With investment professionals based in North America, Europe and Asia Pacific, the firm, a subsidiary of MassMutual, aims to serve its clients, communities and employees, and is committed to sustainable practices and responsible investment. Learn more at www.barings.com.
*Assets under management as of March 31, 2022