The $371 billion investment giant Barings has raised its third European private loan fund with €7 billion ($7.1 billion) in capital commitments.
The European Private Loan Fund is already 50% invested and is overseen by a European investment team that has deployed $6.1 billion in the last 18 months across more than 80 transactions. The fund follows the $9.5 billion closed in 2021 for the firm’s North American Private Loan Fund II and associated accounts.
“In these tumultuous times, Barings European Private Debt strategies offer investors exposure to a highly diversified pan-European strategy,” said Adam Wheeler, managing director and co-head of Barings Global Private Finance Group. “Our clear and consistent investment philosophy, disciplined approach and focus on defensive companies that have a fundamental reason to exist resonated with our clients.”
The successful fundraise, which included more than two thirds of commitments from investors in prior funds, brings Barings’ total committed capital in Europe to nearly $13 billion.
“We firmly believe a disciplined approach and strong credit selection can continue to offer investors attractive, through-the-cycle, risk-adjusted returns,” said Ian Fowler, managing director and co-head of Barings Global Private Finance Group. “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.”
The firm has more than 90 investment professionals focused solely on private finance and have offices in North America, Europe and Asia Pacific. Leveraging its scale and resources of its team to source private credit opportunities across the developed markets, officials said that over the last 12 months Barings has invested $14 billion globally in private credit.
Barings track record dates back more than 30 years with lending to private equity sponsor-backed companies.
Over the last 15 years, the team has completed over 300 private market loan transactions in Europe, according to Mark Wilton, managing director and co-portfolio manager for Barings European Private Finance Group.
“We have spent many years creating a leading European Private Debt platform, serving both our investors and private equity customers,” added Wilton. “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.”