Barings and Mubadala Form Strategic Partnership Focused on Financing Solutions for European Middle-Market Businesses

Rhea-AI Summary

Barings has announced the establishment of Barings Mubadala Enterprise (BME), aiming to provide $3.5 billion in financing to European middle-market businesses over the next 18 months. This initiative, backed by Mubadala Investment Company and MassMutual, is designed to meet the increasing demand for flexible capital solutions. BME will focus on senior secured loans as businesses move away from traditional bank financing. Key markets include the UK, France, Benelux, and the Nordics, enhancing Barings' strategic partnerships and global presence.

Positive

• Formation of Barings Mubadala Enterprise (BME) to provide $3.5 billion in financing.
• Partnership with Mubadala and MassMutual strengthens Barings' market position.
• Focus on senior secured loans aligns with market trends away from traditional bank financing.
• Targets high-demand European markets: UK, France, Benelux, and Nordics.

Negative

• None.

CHARLOTTE, N.C. and ABU DHABI, UAE, Sept. 22, 2020 /PRNewswire/ -- Barings, one of the world's leading financial services firms, today announced that it has formed the Barings Mubadala Enterprise (BME) – an evergreen origination platform seeking to provide financing solutions to European middle-market businesses.

BME and its capital partners aim to provide $3.5 billion in financing over the next 18 months to help meet growing corporate demand for flexible capital solutions in Europe. The partnership is anchored by Mubadala Investment Company (Mubadala), and will invest alongside MassMutual and Barings' capital. This initiative continues to build on Barings' base of long-term, strategic partnerships and its position as a leading institutional capital provider across the European middle market landscape.

Barings' Chairman and CEO Tom Finke said: "This partnership will leverage our significant capabilities in origination and alternative credit to help strategic capital partners such as Mubadala invest with scale. We are looking to take advantage of middle-market direct lending opportunities, focusing on senior secured loans as borrowers shift focus from traditional bank financing to institutional capital providers to fund acquisitions and growth projects."

Waleed Al Mokarrab Al Muhairi, Mubadala's Deputy Group CEO and CEO of Alternative Investments & Infrastructure said: "Mubadala has a long history of establishing strong, value-creating partnerships with leading global organizations. The partnership with Barings, through the establishment of BME, is very consistent with this approach. We look forward to deepening our collaboration with Barings over the coming years. BME will draw from the experience and global network of Mubadala and the deep expertise from Barings to deliver value to all stakeholders."

BME will focus particularly on opportunities in the United Kingdom, France, Benelux and the Nordics.

Adam Wheeler, Co-Head of Barings' $14.2 billion Global Private Finance Group, added: "We are incredibly proud to be partnering with Mubadala, one of the world's leading sovereign investors and one of the pillars of Middle-East finance. This represents an important step in Barings' efforts to expand its global footprint."

About Barings
Barings is a $346+ billion* global financial services firm dedicated to meeting the evolving investment and capital needs of our clients and customers. Through active asset management and direct origination, we provide innovative solutions and access to differentiated opportunities across public and private capital markets. A subsidiary of MassMutual, Barings maintains a global presence across North America, Europe and Asia Pacific.
*As of June 30, 2020

About Mubadala Investment Company
Mubadala Investment Company is a sovereign investor managing a global portfolio, aimed at generating sustainable financial returns for its shareholder, the Government of Abu Dhabi. Mubadala's US $229 billion portfolio spans five continents with interests in multiple sectors including aerospace, ICT, semiconductors, metals and mining, renewable energy, oil and gas, petrochemicals, utilities, healthcare, real estate, pharmaceuticals and medical technology, agribusiness and a global portfolio of financial holdings across all asset classes.

Mubadala's financial investment arm, Mubadala Capital was established in 2011 and operates six integrated businesses focused on various asset classes and geographies that include private equity, public equities, ventures capital and credit, in addition to a Brazil focused investment business and certain sovereign investment partnerships. The unit invests globally across the capital structure in both public and private securities. In addition to managing its own balance sheet investments, Mubadala Capital invests third-party capital on behalf of institutional investors in four of its six businesses.

For more information, please visit www.mubadala.com, follow @mubadala on Twitter.

Media Contacts:

For Barings:
Cheryl Krauss
Media Relations, Barings
980-417-5858
cheryl.krauss@barings.com

Brunswick for Mubadala:
Alex Blake-Milton +971 50 694 7589
Tom Drummond  +971 54 305 6609
mubadalacapital@brunswickgroup.com

 

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SOURCE Barings