Barings closes global senior debt fund on $1.3bn

The Charlotte, North Carolina-based firm had also raised $1bn for its North America debt fund. 

Barings has held a final close on its $1.3 billion senior fund, the asset manager said on Wednesday.

The Barings Global Private Loan Fund II garnered 26 investors from 11 different countries, according to a statement. The fund, which was launched in March, targets senior secured corporate loans globally.

Eric Lloyd, managing director and head of the global private finance team at Barings, said in the statement that the fund meets the demand for capital of mid-market borrowers in US, Europe and developing countries in Asia.

The fund will likely be active in the more developed economies of Asia Pacific like Australia, Lloyd told Private Debt Investor. Based on the previous fund allocations, the new fund is likely to fall 50 percent to 60 percent US assets, 30 percent to 40 percent Europe, and 10 percent to 20 percent Asia. 

The latest fund has a multi-industry strategy, though the fund will stay away from commodity-indexed industries like energy. 

“There’s no change in strategy from the previous fund, which is a focus on capital preservation and finding an attractive illiquidity premium through all cycles,” Lloyd said. The firm declined to comment on the terms or performance of either fund.

The Charlotte, North Carolina-based asset manager is also raising capital for its North America senior debt fund, which had raised $1 billion by April, as Private Debt Investor exclusively reported. The Barings North American Private Loan Fund launched in December, a filing with the US Securities and Exchange Commission showed.

“Private credit has always offered the potential for enhanced yield, a return premium over public credit markets and portfolio diversification,” Lloyd said in the statement.

Global senior debt funds like Fund II have raised a relatively high amount of capital during the first part of this year. Of the $31.19 billion that private debt funds raised across the world over the first quarter, 42 percent, or roughly $13.1 billion, targeted senior debt, according to PDI’s latest Fundraising Report. That’s compared to 35 percent for mezzanine, 20 percent for distressed debt and 3 percent for collateralised loan obligation strategies over the same period.

Barings has invested more than $1.8 billion in global private credit over the last year, the statement showed. The firm has $288 billion in assets under management as of 30 June.