Private equity firm, Barings, sets the stage for a second European private credit Collateralized Loan Obligation (CLO) arrangement.
In the burgeoning European market for middle-market Collateralized Loan Obligations (CLOs), global investment firm Barings has made a significant move. According to a report, Barings has registered its second European CLO with Irish regulatory authorities.
The registration of this financing facility, which took place on 28 July, marks a continued commitment by Barings to the European CLO market. However, the exact nature of the second European CLO and its financial details are not disclosed in the article.
Barings first foray into the European private credit CLO market came last November, when they successfully priced their first ever European private credit CLO. Yet, the article does not provide any new information about this initial CLO.
The European CLO market, while smaller than its US counterpart, is steadily growing. As of mid-2025, the US CLO market stands at about $930 billion outstanding, roughly four times the size of the European CLO market, which is around €344 billion (approximately $370 billion).
European CLOs have distinct characteristics due to regulatory and structural differences. For instance, European CLO managers are required to retain a minimum 5% economic stake in their issued CLOs, while US CLOs have mostly been exempt from this rule since 2018. European CLO pools also tend to have larger exposures in the B2/B rating range and less CCC exposure than US pools.
Barings, an established global asset manager known for structured credit strategies including CLOs, is one of the firms contributing to the growth of the European CLO market. However, the article does not mention any specific assets or borrowers associated with the second European CLO registered by Barings.
The steady growth of the European CLO market is attracting new managers and increasing issuance from US-based firms entering Europe. In 2025, the US has priced 39 new issue private credit CLOs, totaling $20.5bn (£15.4bn) in sales.
Despite the optimistic market sentiment for both US and European CLOs, Barings declined to comment when contacted by Alternative Credit Investor. The article does not provide any new comments from Barings regarding the second European CLO or the $2.5bn transactions.
In summary, the European middle-market CLO space is a smaller but increasingly important market, benefiting from stronger regulatory protections and growing manager interest, including from major global firms like Barings. However, specific details about recent Barings issuances in the European market remain scarce.
- Barings' registration of its second European Collateralized Loan Obligation (CLO) with Irish regulatory authorities indicates a continuous involvement of the global asset manager in the banking-and-insurance sector, specifically the finance industry within the European CLO market.
- As the European CLO market expands, attracting new managers and increasing issuance, it is apparent that industry giants, such as Barings, are making significant moves in the industry, contributing to the growth in the banking-and-insurance sector, while keeping the specifics of their European CLO ventures relatively confidential.
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