MassMutual Sells 18% Stake in Barings to MS&AD for $1.44B
MassMutual and its global asset management subsidiary, Barings, have agreed to sell an 18% ownership stake in Barings to MS&AD Insurance Group Holdings, through its subsidiary Mitsui Sumitomo Insurance Co., generating $1.44 billion in cash proceeds.
Barings, which oversees $470 billion in assets, manages strategies spanning public and private fixed income, real assets, and capital solutions. The MS&AD transaction follows a period of increasing collaboration with major insurance and intermediary platforms. In October, Barings formed a strategic partnership with Principal Financial Group to create bespoke private investment-grade portfolios, while also joining forces with Invesco to expand its offerings for the wealth management channel.
“Building on MassMutual’s continued support, Barings will combine growth capital with our scale and expertise in public and private markets to drive our long-term strategy and deliver solutions for clients,” said Mike Freno, chairman and CEO of Barings.
Following the transaction, MassMutual will retain an 82% majority stake and full governance control of Barings. The asset manager will continue to oversee the majority of MassMutual’s general investment account and will operate as an independent subsidiary with no changes to its investment committees, processes, or day-to-day operations.
“At MassMutual, one of our distinct competitive advantages to deliver sustained value to our policyowners has long been our diverse portfolio of strategic businesses and investments, of which Barings plays a key role,” said Roger Crandall, chairman, president, and CEO of MassMutual.
For MS&AD, the investment strengthens a growing partnership. Barings will expand its mandate to manage assets within MS&AD’s general investment account, helping diversify the insurer’s portfolio while broadening its access to Barings’ global public and private markets expertise. As part of the agreement, a member of MS&AD’s leadership team will join Barings’ board of managers.
The transaction is subject to customary regulatory approvals and closing conditions. Goldman Sachs served as financial advisor to MassMutual, while Simpson Thacher & Bartlett acted as its legal counsel.