Dechert advises Barings on landmark CLO

Dechert LLP has advised investment manager Barings on the creation of Barings Euro Middle Market CLO 2024-1 DAC, the first-ever European middle market private credit collateralised loan obligation (CLO). Valued at €380 million, the CLO was arranged by BNP Paribas and marks Barings’ twelfth new issue CLO of the year.

The Dechert team, known for its expertise in securitisation and CLO transactions, represented Barings in this groundbreaking endeavour. The legal team included global finance partners Aaron Scott in London and Christopher Duerden in Charlotte, alongside associate Rory O’Connor in London. Tax advice was led by partners Mark Stapleton in London and Jeff Kang in New York, supported by associate Nicolas Kokkinos in London.

Aaron Scott commented on the significance of the transaction, stating it had been long anticipated in the market. He highlighted the privilege of working alongside Barings to bring this innovative deal to fruition. “Dechert is proud to have utilised its transatlantic capabilities and market leadership to help realise this landmark transaction,” he said.

This milestone marks a pivotal moment for the European middle-market private credit sector, showcasing the growing demand for sophisticated financing solutions and Dechert’s leading role in supporting such initiatives.