Barings collects $1.85bn for US, Canada senior debt investments

The firm closed a global direct lending fund last summer at $1.3bn.

Barings has held a close on its debut North American-focused senior credit fund, more than doubling the $750 million target the Charlotte-based firm set for the vehicle.

The asset manager, which oversees $299 billion, has raised $1.85 billion over eight months for its Barings North American Private Loan Fund, the firm said in a statement. The firm had been scheduled to hold a $1 billion close in April, as Private Debt Investor previously reported.

Commitments came from 45 investors across 13 different companies. The vehicle invests in floating-rate senior secured loans in mid-market companies.

Specific management fees for the US- and Canada-focused vehicle were not available, but the firm’s debt products charge management fees of 0.1 percent to 1.25 percent on outstanding loan balances or 1.4 percent on net equity invested from the fund, according to documents filed with the Securities and Exchange Commission.

“Our flagship North American Private Loan Fund will enhance Barings’ ability to meet the needs of investors, borrowers and the private equity sponsors that are key partners in our private credit business,” Eric Lloyd, a managing director and head of the firm’s global private finance group.

Last summer, the firm closed on $1.3 billion for its Barings Global Private Loan Fund II. The vehicle will likely be active in the more developed economies of Asia Pacific like Australia, Lloyd told Private Debt Investor at the time.

Senior debt had a banner fundraising year in 2017, according to PDI data. The strategy raised $60.1 billion, buffeted by massive European fundraisings, including Intermediate Capital Group’s massive €5.2 billion ICG Senior Debt Fund III and Alcentra’s €4.3 billion European Direct Lending Fund II. Total senior debt capital collected in 2017 made up 38.7 percent of the $180 billion raised across private credit strategies.