Andrew Hedlund
The firm’s sponsor coverage and asset management groups are under new leadership.
Among the investors in the vehicle are a Texas pension fund and a life insurance business.
The alternative credit behemoth is coming off a monster fundraise for its third rescue lending fund that locked down $7bn.
Getting the nod from a BDC’s equity investors to increase borrowings would be more efficient and engender goodwill.
Barings has set the stage for a turnaround of the BDC through a shareholder-friendly fee structure and a commitment to slowly building out a portfolio of privately originated senior loans – but it will take some time, analysts say.
If the global narrative is bank retrenchment advancing the cause of private debt, nobody told Canada, reports Andrew Hedlund
Additional leverage may mean higher fees for shareholders if BDC managers do not alter their fee structure.
The triparty transaction would allow Barings to construct a senior debt-focused portfolio ‘from scratch’.
The industry benchmark showed an almost 10% gross return for the strategy since September 2004.
The two companies are among the first managers to take action on the new statute, which raises the allowed debt-to-equity ratio from 1:1 to 2:1.