Barings has launched the first multicurrency private credit collateralised loan obligation (CLO) in Europe, valued at €401m (£353m).
The Barings Euro Middle Market CLO 2025-1 DAC is backed by a portfolio of European middle market loans and features a four-and-a-half-year reinvestment period. The transaction is entirely supported by private credit assets directly originated by Barings’ European Private Credit platform.
The announcement follows Barings’ achievement last November, when it attracted headlines for launching the first European private credit CLO.
“This is a landmark transaction for the European CLO market and a natural evolution of our platform,” said Joe Evanchick, head of middle market CLOs at Barings. “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.”
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The initial portfolio comprises approximately 65 private credit loans, with the goal of expanding the number of issuers over the course of the reinvestment period, Barings said. Assets within the portfolio span 10 countries.
Back in March, Barings’ head of European private credit and capital solutions, Stuart Mathieson, first indicated to Alternative Credit Investor that the firm was looking to launch a multicurrency European CLO.
When speaking about the launch of the first European private credit CLO Mathieson said: “The different currencies in Europe also create challenges. A dual-currency CLO is not impossible, but it is more complex, hence why we started out with a single-currency product.”
