Barings confirms private credit focus following staff exodus
Barings has confirmed its commitment to private credit and the wider private finance sector following a turbulent few months which saw a number of key staff leave the firm, resulting in legal action.
The global investment management firm has made a series of new hires in recent weeks, designed to bolster and grow its private market division.
Alternative Credit Investor can reveal that since the departures, Barings has committed and closed more than $1bn (£790m) in new global private finance deals, according to a source familiar with the company, and is in the process of recruiting senior investment professionals in North America and Europe as it seeks to grow the capabilities of its global private finance business.
Barings has a team of more than 80 investment professionals across its private finance platform, including Bob Shettle, who returned to the global private finance group last month as a managing director. Shettle had previously spent more than 20 years at Barings before leaving to pursue new opportunities four years ago.
“Global private finance continues to be a key strategic focus for Barings and we are confident that with the leadership team’s deep experience in the market, along with the support of the more than 80 investment professionals across our global private finance platform, we will remain well-positioned to drive long-term value for our clients,” a Barings spokesperson told Alternative Credit Investor.
Earlier this year, the private credit world was shocked when Corinthia Global Management – a brand new investment platform backed by investment giant Nomura – poached a number of top executives from Barings’ private credit division. Ian Fowler and Adam Wheeler, who were co-heads of the global private finance team at Barings, were among the departures.
Within a week of the news being announced, reports emerged that several private credit fund managers were circling the Barings loan book looking for opportunities.
However, Barings swiftly hit back and has doubled down on its commitment to its private credit business.
Immediately following the departures, Barings transitioned to new global private finance leadership, named permanent investment committees, and has continued to deploy capital and to support sponsors across new transactions, re-financings, and add-on acquisitions.
Barings has also pursued legal action against Corinthia and its former employees.
In March, a US court granted Barings an injunction against Corinthia which required all former staff to return any confidential information relating to Barings’ clients by the end of the month.
In mid-May, Corinthia representatives asked a judge to dismiss Barings’ lawsuit stating that Barings has not proven that it suffered any harm from the staff departure.
However, Barings is confident that it will prevail once the case has been heard.
“We have commenced litigation against Corinthia and some of its new leadership as a result of the defendants’ blatant disregard of their fiduciary and contractual obligations to Barings and our clients, which goes against Barings’ codes of conduct and ethics,” said a Barings spokesperson.
“We have full conviction in the merits of our suit and will not sit idly by and allow the defendants’ misconduct to occur.”
At the time of writing, the new Corinthia private credit team had agreed to comply with their contractual obligations to Barings and its clients, including restrictions on using confidential information, soliciting Barings’ clients, and poaching additional Barings employees.
The staff exit has been described as one of the largest corporate raids at an asset manager in years.
