Barings blasts asset manager Corinthia over ‘corporate raid’

investmentnews.com:

An embattled Barings has labeled its dispute with Corinthia Global Management “one of the largest corporate raids at an asset manager in years,” according to the Financial Times.

Barings, a subsidiary of US life insurerMassMutual, initiated legal action on Monday, seeking a temporary restraining order and preliminary injunction against Corinthia. This move came after more than 20 Barings staff members – including the purported ringleaders of the defection, Ian Fowler and Kelsey Tucker – transitioning to the rival firm.

The mass exit has compelled Barings to suspend new investments in select private credit funds, highlighting the intense competition for elite talent within the burgeoning $1.7 trillion private credit industry.

The lawsuit details the repercussions of these departures, casting a shadow over the future of Barings’ direct lending endeavors.

“Given that Corinthia has no business relationships or operations of its own, the success of Corinthia’s raid is dependent on its ability to lure… clients to follow the departing senior executives,” Barings said in its filing.

This upheaval came after the early March walkout of a group of Barings employees, including the co-heads of global private finance, to later join Corinthia.

To help fill the vacuum in leadership, Barings has elevated Bryan High, a veteran of the firm since 2007, to the position of head of global private finance, with Eric Lloyd assuming the role of division chairman, according to Bloomberg.

The company asserted: “We remain well-supported by a platform of more than 80 private credit team members. We have also implemented a robust retention plan to ensure consistency and continuity as we progress.”

The lawsuit highlights Corinthia’s aggressive