Barings Germany Positions Itself For Further Growth In Investment Management
Oct 12, 2020
Barings, one of the world’s largest diversified real estate investment managers, is repositioning its German business, aligning its business model with the rest of its real estate operations across Europe, in focusing entirely on investment management by spinning off third party asset management business into a separate new company. This is a reflection of Barings’ success in developing its investment management business. Barings currently has in excess of €3bn capacity to invest in multiple Pan European strategies and over €1bn targeting Germany.
“We have made significant investments in the German real estate market and this reflects our success in capital raising for our internal funds,” said Mike Freno, President, Barings. “It was always our intention to grow our investment management business. We have now reached that critical point and are splitting the business, so Barings can focus solely on our investment management clients.”
Covering the German market from three offices – Munich, Berlin and its headquarters in Frankfurt, Barings will continue to provide all the key disciplines of an in-house investment management business, including investment, asset and project management services. The firm will further strengthen its talent and operations to support its growth.
Sascha Becker, currently Managing Director and Head of Frankfurt, will become Barings Germany Country Head, reporting jointly to Charles Weeks, Head of Real Estate Equity Europe and APAC and Gunther Deutsch, Managing Director Germany and Head of Investment Transactions Europe.
Consequently, Barings Germany has allowed for a spin out and will transition all non-core third party asset management and advisory client business to Sonar Real Estate GmbH – a new asset management business.
Becker has been with Barings Real Estate since 2015, driving transaction and asset management in central Germany and managed deal flow of approximately €2bn.
“Barings will now manage circa €1bn on behalf of four discretionary investment management clients, comprising 18 assets, across Germany. With a further €150m in exclusivity and an additional €1bn to deploy” commented Becker. “I’m looking forward to creating fresh opportunities together with our local teams.”
“Barings has deep seated expertise in multiple strategies and sectors across Germany,” said Deutsch. “The success of our funds’ business reflects the quality and performance we have delivered to our institutional client base in Germany and across Europe. We will continue to build an exceptional team that covers all disciplines and will grow over time – to successfully deploy capital on behalf of Barings expanding capital sources.”
Barings Real Estate
Barings Real Estate (BRE) offers a broad range of global investment opportunities across the private debt and equity investment markets. BRE invests in all major property sectors and offers an expansive range of financing solutions to real estate borrowers. BRE also specializes in providing government and government-sponsored entity lending products through our wholly owned subsidiary, Barings Multifamily Capital. Follow us on LinkedIn at www.linkedin.com/showcase/barings-alternative-investments.
Barings is a $346+ billion* global financial services firm dedicated to meeting the evolving investment and capital needs of our clients and customers. Through active asset management and direct origination, we provide innovative solutions and access to differentiated opportunities across public and private capital markets. A subsidiary of MassMutual, Barings maintains a strong global presence with business and investment professionals located across North America, Europe and Asia Pacific.
*As of June 30, 2020
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