Barings has closed its second European private loan fund at 1.5 billion euros. Barings European Private Loan Fund II’s investors include public and private pensions, insurance companies, family offices and fund-of-funds from Asia Pacific, Europe and North America. BEPLF II will invest primarily in European private senior secured corporate loans.
CHARLOTTE & LONDON, (7 August 2019) – Barings, one of the world’s leading financial services firms, announced today the final close of Barings European Private Loan Fund II (“BEPLF II” or the “Fund”). BEPLF II raised €1.5 billion in unleveraged commitments from over 45 existing and new institutional investors including public and private pensions, insurance companies, family offices, and fund-of-funds from Asia Pacific, Europe and North America.
BEPLF II is Barings’ second co-mingled European senior loan fund and will invest primarily in European private senior secured corporate loans. The fund has already deployed nearly 50% of capital committed, which is a reflection of Barings’ direct origination capabilities, global presence and ability to find attractive risk-adjusted opportunities through local relationships. Barings has invested more than €3.0 billion in European private credit over the last two years.
“The trends and dynamics underlying the European private credit market have shifted considerably in the past decade, creating an opportunity for direct lenders to provide the capital needed by middle-market companies, whilst also delivering a less complex and more efficient lending solution to the borrower,” said Adam Wheeler, Head of European and Asia Pacific Private Finance at Barings. “For our investors, some of which are entering the asset class for the first time, the Barings European Private Loan Fund II provides access to differentiated investment opportunities up and down the capital structure focusing on risk adjusted returns with a premium to public credit markets, as well as portfolio diversification.”
“With over two decades of experience investing in private credit, the Barings Private Finance team have the relationships and origination capabilities to successfully deploy capital, as demonstrated with nearly 50% of capital being invested by the final close,” said Eric Lloyd, Head of Global Private Fixed Income at Barings. “While concerns over the level of available capital in private debt markets has been a developing theme, Barings continues to build lasting partnerships with middle-market borrowers and has the flexibility to deploy across all parts of the capital structure.”
With more than 70 investment professionals focused solely on private finance, Barings uses its global reach and expertise to source private credit investment opportunities for clients across developed markets worldwide. The team’s clients provide capital to private companies in a broad range of industries with enterprise values of $/€25-500 million and EBITDA of $/€5-75 million. The team focuses on debt origination and opportunistic investing in senior secured loans, second lien, unitranche, mezzanine debt and equity co-investments.
Barings is a $325+ 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, 2019