Barings targets wealth market with alts products
The democratisation of alternatives funds was a key reason for Barings to consider entering the Australian wealth management market.
It was announced earlier this year that the firm had hired John Nicoll from Zenith as sales director at the global investment manager as it looks to expand its Australian reach.
Barings has more than US$421 billion ($673 billion) in assets under management, as of 31 December 2024. It initially launched in Australia in the institutional space in 2008 and has $18 billion in institutional assets.
The US-headquartered investment manager launched two private credit funds for Australian investors last November, as it recognised “numerous opportunities” in the local private credit space.
More recently, Barings acted as joint lead arranger of a $345 million senior secured credit facility supporting financial advice and accounting group AZ NGA, representing another step in its growth plans.
Speaking to Money Management, Jonathan Baird, head of Australian wealth distribution, said the firm currently has three employees in its wholesale market and sees Australia as a “huge region” for the global company.
“We have three in our distribution team for the wholesale market and continue to grow this. Australia is a huge region for us and we are eager to expand,” he said.
“The wealth managers here have been really supportive so far. Our high grade debt fund, in particular, has seen strong growth. There is a focus on alternatives now, which is good for us as our business is built upon that.
“Wealth management has a complex regulatory model, and we are in a good position to deliver solutions and help them navigate these complex markets.”
Barings cemented its entry in the local market through its acquisition of Sydney-based private equity real estate investment company Altis Property Partners (now known as Barings Real Estate Australia) in 2022, followed by its purchase of Gryphon Capital Investments in 2023.
Exploring future development plans, Baird said the firm is keen to launch more products but will ensure they are suitable for the market first.
“We won’t be a mass market manufacturer of products. We want to be very specific and targeted in areas that we know our clients are seeking. We haven’t got an active ETF at the moment and have no plans to launch one ourselves, but we can see why they are popular and being seen as an alternative access point.”
AUTHOR
Laura Dew
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