Barings set for $260bn merger with sister firms

Barings set for $260bn merger with sister firms

Baring Asset Management is to be merged with three other asset management subsidiaries of life insurance parent Massachusetts Mutual Life Insurance Company.

Fixed income specialist Babson Capital Management, Cornerstone Real Estate Advisers and real assets manager Wood Creek Capital Management are to merge with the fund house later this year, with the resulting entity adopting the Barings brand.

The combination, which is subject to regulatory approval, will create a multi-asset investment management firm with more than $260bn (£183bn) of assets under management and offices in 20 countries.

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The newly formed company is to be led by Tom Finke, current chairman and chief executive of Babson, and will be headquartered in North Carolina.

“Together, Babson, Barings, Cornerstone, and Wood Creek offer institutional and retail investors worldwide a compelling array of investment offerings,” he said.

“As a unified firm we will be better able to deliver our diverse and global investment offerings to clients.”

David Brennan, the Barings chairman and chief executive who is set to retire this summer, said: “This is an exciting opportunity for the Barings organisation to combine with its affiliates to create a new, more diversified global manager.”

The initial phase of the merger is expected to close in the fourth quarter of this year.