Barings launches first European middle market private credit CLO valued at €380m

Stuart Mathieson, head of European and APAC private credit at Barings, said the new CLO draws on the firm’s experience in both direct lending and structured credit. He said Barings Euro Middle Market CLO “combines decades of experience as a leader in the middle market direct lending space with our strong track record in issuing US middle market CLOs to bring an innovative solution to our clients.”

Barings said the launch builds on activity across its broader CLO platform, with 12 new issue CLOs priced globally year to date. Barings’ Global CLO team manages $52bn and has more than 25 years of experience originating, managing and investing in CLOs.

The transaction also draws on Barings’ private credit capabilities, with the firm’s Global Private Finance team citing a track record of over 30 years in the private credit market. Barings said this experience underpins its approach to sourcing and managing the European middle market senior secured loans that back the new CLO.

Law firm Dechert advised Barings on the launch of Barings Euro Middle Market CLO 2024-1 DAC, which it described as the first-ever European middle market private credit CLO. The Dechert team was led by global finance partners Aaron Scott in London and Christopher Duerden in Charlotte.

BNP Paribas also highlighted the strategic importance of the mandate for its structured credit franchise. “This transaction represents the strength of the full Global CLO franchise of BNP Paribas and we are delighted to have worked with Barings to bring about this important inaugural European Middle Market CLO,” said Dushy Puvan, head of EMEA CLOs at BNP Paribas.