Private credit firms circle Barings’ loan book
Private credit giants including Ares Management and KKR are looking for opportunities in Barings’ loan book after the asset manager paused new private credit investments following its team exodus.
Newly-launched Corinthia Global Management poached around 20 members of Barings’ private credit division, prompting Barings to sue Corinthia for “one of the largest corporate raids at an asset manager in years”.
Now private credit firms are looking to capitalise on troubles at Barings, according to Bloomberg, eyeing any potential refinancing opportunities.
They are also approaching buyout firms to see if they would like to take Barings out of the capital structure of their portfolio companies, according to sources cited by Bloomberg.
Other firms doing so include Intermediate Capital Group (ICG), Carlyle Group and Hayfin Capital Management.
Spokespeople for Ares, KKR, ICG, Carlyle and Hayfin all declined to comment to Bloomberg.
In a statement, Barings said that it is committed to providing capital to its sponsor clients and would support their current and future financing needs. The firm continues to receive “strong support” from partners across the market, including from its limited partners, a spokesperson said.
As well as suing Corinthia, Barings is also suing former employees Adam Fowler and Kelsey Tucker.
The lawsuit accuses Fowler and Tucker of misusing confidential information to recruit Barings employees. Barings aims to stop Corinthia from poaching more employees and block it from soliciting Barings customers, as well as claiming damages resulting from the team lift.
