Babson Capital Management, its subsidiaries Cornerstone Real Estate Advisers and Wood Creek Capital Management, and its affiliate Baring Asset Management will all combine into one firm under the Barings brand.
The combined firm, which will use some variation of the Barings name to be determined, will be a global multiasset investment management firm with more than $260 billion in assets under management. The firm will be led by Tom Finke, current chairman and CEO of Babson, and will be headquartered in Charlotte, N.C.
David Brennan, chairman and CEO of Barings, will retire during the summer.
“We started looking at the trends in the global institutional asset management industry. Integrating our capabilities around a common brand and distribution platform made sense,” Mr. Finke said in a phone interview.
Mr. Finke added: “As we see the trends among large pools of capital around the world, big institutional investors are looking to do more than just one special asset class. They’re looking for managers that can specialize in more than one asset and provide scale.”
No change in investment leadership is expected. Distribution and marketing capabilities will be combined together to support the new firm.
“We see minimal disruption at the professional level,” Mr. Finke said.
As a result of the combination, the Barings brand and logo will be reassessed. The brand assessment should be completed sometime by the end of the third quarter or beginning of the fourth.
Babson, Barings, Cornerstone and Wood Creek are affiliates of Massachusetts Mutual Life Insurance Co.
Casey Quirk & Associates is advising on the integration.