Barings in $260bn AM merger

Subsidiaries of US mutual life insurance company Massachusetts Mutual Life Insurance Company (MassMutual) are to merge.

Babson Capital Management, its subsidiaries Cornerstone Real Estate Advisers and Wood Creek Capital Management, and Baring Asset Management Limited, will be gathered under the Barings brand.

It will lead to the creation of a global, multi-asset investment management firm with over $260bn (€236.8bn) of assets under management, offices in 20 countries and over 1,700 professionals.

The new entity will provide fixed income, equity, multi-asset, real estate, real assets, and alternatives products.

No change in investment leadership is anticipated. Furthermore, distribution and marketing capabilities will be combined together to support the new global firm, MassMutual has announced.

Tom Finke, current chairman and CEO of Babson, will head the group headquartered in Charlotte, North Carolina.

David Brennan, chairman and CEO of Barings, who will retire as planned during the summer of 2016, commented, “This is an exciting opportunity for the Barings organisation to combine with its affiliates to create a new, more diversified global manager.”

With the combination, the Barings brand and logo will be refreshed. MassMutual explained the choice to retain the Barings brand reinforces the global aspect of the new firm, the diversified nature of its client base, and the Barings heritage which dates back to 1762.

The firm expects to close the initial phase of the integration during the fourth quarter of this year, subject to required regulatory approval.

MassMutual is headquartered in Springfield, Massachusetts and its major affiliates include: Babson Capital Management; Baring Asset Management; Cornerstone Real Estate Advisers; The First Mercantile Trust Company; MassMutual International; MML Investors Services, Member FINRA and SIPC; OppenheimerFunds; and The MassMutual Trust Company.

Adrien Paredes-Vanheule
Adrien Paredes-Vanheule is French-Speaking Europe Correspondent for InvestmentEurope, covering France, Belgium, Geneva and Monaco. Prior to joining InvestmentEurope, he spent almost five years writing for various publications in Monaco, primarily as a criminal and financial court reporter. Before that, he worked for newspapers and radio stations in France, in particular in Lyon.

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