Barings portfolio finance platform closes $2.5bn in six months

Barings’ portfolio finance platform has closed more than $2.5bn (£1.93bn) in new third party investor commitments over the past six months.

The platform allows insurance companies and other institutional investors to access directly originated private investment grade debt.

The portfolio finance platform has executed more than $48bn of investment-grade, privately originated senior secured financings since its inception in 2017, including over 120 facilities across more than 55 asset manager partners.

It provides directly originated senior secured financing on cross-collateralised portfolios of private market assets, including corporate credit, real estate credit, secondary portfolios, and GP finance.

“As demand for portfolio financing solutions continues to grow rapidly and shift away from bank balance sheets, we see a more than $200bn annual investment opportunity to fill that funding gap and provide bespoke solutions bilaterally to asset managers,” said Dadong Yan, head of Barings portfolio finance.

“We are thrilled to reach this milestone in third-party commitments and look forward to further scaling our platform.”

“Our portfolio finance capabilities are an integral component of the comprehensive suite of financing solutions that Barings offers sponsors, asset managers, and asset owners as a one-stop shop with certainty of execution,” said Eric Lloyd, president of Barings.

“At the same time, Dadong and the team are meeting the growing demand from insurance companies and other institutional investors globally for access to a high quality and diversified private investment grade asset class.”

Barings’ portfolio finance team encompasses more than 30 professionals in the US and Europe, and spans investment origination, underwriting, structuring, servicing, and portfolio management. It has reported zero losses since inception.