The Aftermath of Corinthia Global Management’s Corporate Raid on Barings’ Private Credit Team

Corinthia Global Management’s Corporate Raid on Barings’ Private Credit Team Sparks Legal Battle and Industry Interest

In a move that shook the financial industry, Corinthia Global Management poached the global private finance division of Barings’ private credit team, leading to what has been described as “one of the largest corporate raids at an asset manager in years.” The aftermath of this bold move has been filled with legal battles, industry interest, and strategic moves from both parties.

Barings was quick to respond to the raid by filing a lawsuit against Nomura-backed Corinthia. A US court granted Barings an injunction against Corinthia, requiring all former staff to return any confidential information related to Barings’ business. The company also took legal action against its former employees Ian Fowler and Kelsey Tucker, accusing them of misusing confidential information to recruit Barings employees. Fowler now serves as co-head of global private finance at Corinthia, while Tucker is the firm’s chief operating officer.

Meanwhile, private credit giants such as Ares Management, Carlyle, Hayfin, and KKR wasted no time in expressing interest in Barings’ loan book. They approached buyout firms to explore opportunities to take Barings out of the capital structure of their portfolio companies. Barings temporarily paused certain private market vehicles as it navigated the aftermath of the raid.

As Corinthia formally launched its operations with a focus on generating attractive risk-adjusted returns for investors through private debt instruments, Barings began rebuilding its private credit team. The company announced plans to hire six new managing directors in North America and Europe for loan origination, as well as two positions in portfolio monitoring. Internal promotions were made to fill some of the vacated roles in its global private finance division, which manages approximately $33 billion in assets.

A new permanent investment committee has been established to oversee key regions, signaling Barings’ commitment to regaining its footing in the private credit market. The fallout from Corinthia’s corporate raid continues to reverberate across the industry, with all eyes on how both companies will navigate the challenges and opportunities that lie ahead.