Barings, one of the world’s leading investment managers, today announced that it has launched the first multicurrency private credit CLO in Europe. The transaction, Barings Euro Middle Market CLO 2025-1 DAC, is backed entirely by private credit assets, directly originated by Barings’ European Private Credit platform.
This €401 million CLO is the first of its kind to combine a multicurrency structure with a portfolio targeting exclusively private credit assets. The deal features a 4.5-year reinvestment period, a strategic decision enabled by the strong investor response to Barings’ initial static CLO, Barings Euro Middle Market CLO 2024-1 DAC, priced in November 2024. The reinvesting format reflects Barings’ confidence in its origination capabilities and the depth of investor demand for differentiated private credit exposure.
“Investor appetite for private credit CLOs continues to grow, and this transaction demonstrates our ability to offer innovative structures to meet that demand,” said Adrienne Butler, Head of Global CLOs at Barings. “We’re proud to be first movers in Europe and to provide institutional investors with access to high-quality, directly originated assets.”
The initial portfolio comprises approximately 65 private credit loans, with the goal of significantly expanding the number of issuers over the course of the reinvestment period. All assets were sourced through Barings’ European private credit origination network, which spans ten countries and benefits from deep relationships across the middle market.
Joe Evanchick, Head of Middle Market CLOs at Barings, said, “This is a landmark transaction for the European CLO market and a natural evolution of our platform. By combining a multicurrency structure with a portfolio comprised entirely of private credit assets, we’re offering investors a differentiated way to access Barings’ origination capabilities. The strong demand across tranches reaffirms that institutional investors are ready for innovation in private credit securitisation.”
Stuart Mathieson, Head of Europe Private Credit & Capital Solutions at Barings, said “This deal showcases the depth and reach of our European origination network. With assets sourced from ten countries and a growing pipeline of middle market issuers, we’re proud to deliver a CLO that reflects the strength of our relationships and the quality of our underwriting. It’s a testament to what our team can achieve when we combine local expertise with global scale.”
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