The acquisition will help strengthen Barings' investment capabilities in areas such as credit real assets, emerging markets and others.

Japan’s MS&AD Insurance Group has completed its purchase of an 18 per cent equity stake in Barings, the alternative asset management subsidiary of MassMutual.

The stake was carried out by MS&AD via its subsidiary, Mitsui Sumitomo Insurance Co (MSI).

Barings will manage an increased share of MS&AD’s general investment account and help strengthen the insurance company’s investment portfolio through its credit, real assets, capital solutions and emerging markets capabilities, Barings said in a statement yesterday. 

“Our structure, combined with long-duration investment capital, gives us the scale and stability to invest across market cycles, expand our capabilities, and deliver solutions for clients,” Mike Freno, chairman and CEO of Barings, said. 

MSI will appoint one director to the board at Barings and several MS&AD team members will be seconded to Barings teams across the firm.

MassMutual retains an 82 per cent stake and controlling governance rights in Barings. Barings will continue to manage the majority of MassMutual’s general investment account and operate as an independent subsidiary of MassMutual, with no changes to its day-to-day operations, investment processes, committees, or strategy, Barings said.

As at the end of March, Barings had $481 billion in assets.