Barings Capital Investment Corporation

Overview

• Type: Externally managed, non-diversified, closed-end management investment company that has elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940. The Company has elected to be treated as a regulated investment company (RIC) for federal income tax purposes.
• Formation and operations: Formed February 20, 2020 as a Maryland LLC and converted to a Maryland corporation on April 28, 2020. Began investment operations on July 13, 2020 and made its first portfolio investment on that date.
• Capital structure: Raised capital through a private placement. As of December 31, 2025, the Company has accepted $568.7 million in aggregate capital commitments from investors, and all commitments have been fully funded.
• Primary business focus: Primarily lends to and invests in senior secured private debt of established middle-market businesses across a range of industries. Opportunistic investments may include equity, special situations, structured credit (e.g., private asset-backed securities), syndicated loans, and high-yield investments.
• Adviser and administrator: Externally managed by Barings LLC (the Adviser). Barings also provides administrative services under an Administration Agreement and may engage third-party providers for additional administrative functions.
• Sub-adviser for Europe: Barings International Investment Limited (BIIL), an indirect wholly owned subsidiary of Barings, serves as sub-adviser for European investments.

Investment strategy and structure

• Core strategy: Invest primarily in directly originated senior secured private debt in middle-market companies, mostly in the United States with some investments outside the U.S. Typical loan terms are five to seven years; interest generally broad SOFR plus 450–650 basis points per annum.
• BDC asset requirements: At least 70% of assets must be “qualifying assets” as defined in the 1940 Act; up to 30% of total assets may be allocated opportunistically to non-qualifying assets.
• Examples of non-qualifying asset categories: European direct lending, structured credit, private asset-backed securities, high-yield investments, special situations, real estate debt, and mortgage securities.
• Equity investments: May acquire limited equity interests, generally non-control and minority stakes.
• Target issuers: Middle-market companies with Adjusted EBITDA typically between $15.0 million and $75.0 million.
• Investment approach: Emphasizes senior secured private debt negotiated directly with borrowers rather than through third-party marketing or secondary markets, targeting covenant-driven structures and protections.
• Fee recognition: Fees from debt investments are recognized over the life of the loan using the effective interest method or as earned in certain cases.

Sourcing, origination, and underwriting

• Origination and portfolio management: Led by Barings Global Private Finance (Barings GPF), which operates globally with teams in the U.S., Europe, Australia/New Zealand, and Asia.
• Team scale and capability: Barings GPF has over 120 investment professionals across seven offices, and the investment team at the MD/Director level averages more than 18 years of industry experience (as of December 31, 2025).
• Relationship sourcing: Maintains long-standing relationships with private equity sponsors and other capital providers. Barings emphasizes a one-stop financing approach capable of underwriting larger hold positions, often in excess of $200 million.
• Investment committees: Underwriting is performed by the relevant Barings investment teams and approved by Barings’ investment committees (e.g., Barings Global Private Finance Investment Committees, Barings Capital Solutions Investment Committee, Barings U.S. High Yield Investment Committee). A majority vote is generally required for new middle-market portfolio investments.
• Portfolio governance: Portfolio managers determine investment amounts within Barings’ allocation policies, subject to committee approval and Board oversight.

Valuation and financial reporting (fair value)

• Valuation policy: The Company follows a formal valuation policy and ASC 820-compliant processes to determine fair value on a recurring basis (at least quarterly). Barings acts as the Valuation Designee, with a pricing committee responsible for valuation methodologies and the use of independent pricing vendors where applicable.
• Pricing inputs (ASC 820 levels):
  • Level 1: Quoted prices in active markets for identical assets (e.g., money market funds; listed equity).
  • Level 2: Quoted prices for similar assets in active markets or other observable inputs (e.g., syndicated senior secured loans and structured products priced via independent services).
  • Level 3: Unobservable inputs significant to fair value (e.g., many middle-market private debt and equity investments). Level 3 is used in good faith for these holdings, with consideration of Level 1 and Level 2 inputs when available.
• Independent valuations: Independent valuation providers may appraise loans and equity investments that are not syndicated or lack readily available market quotations, typically as of quarter-end. Initial holdings are recorded at cost and are subsequently assessed with synthetic rating analyses, discounted cash flows, and re-underwriting analyses. The pricing committee may adjust valuations within the provider’s range when warranted.
• Valuation caveat: Valuing investments without active markets involves judgment; Level 3 valuations can incorporate both observable and unobservable inputs and may differ from actual exit prices.

Key facts

• Capital commitments: $568.7 million, fully funded as of December 31, 2025.
• Investment focus: Senior secured private debt in U.S. middle-market companies, with a minimum 70% qualifying assets and up to 30% opportunistic non-qualifying assets.
• Typical investment terms: Five- to seven-year durations; interest generally SOFR plus 450–650 basis points.
• Barings Global Fixed Income Platform: $384.5 billion AUM (as of December 31, 2025).
• Barings GPF personnel: Over 120 investment professionals across seven offices.
• Named portfolio managers: Bryan High, Thomas McDonnell, Matthew Freund, and Daniel Verwholt.
• Governance and oversight: Multiple Barings investment committees support the portfolio managers; the Board provides oversight.
• Management and administration: Barings LLC serves as Adviser and Administrator; BIIL acts as sub-adviser for European investments.
• Geographic scope: Primarily United States, with some investments outside the United States managed by Barings GPF and BIIL.

Summary

Barings Capital Investment Corporation is a U.S.-focused BDC that raises private capital to invest mainly in senior secured private debt of mid-sized U.S. companies, while maintaining an opportunistic allocation to non-qualifying assets and limited equity exposure. The Company relies on Barings LLC and Barings GPF for origination, underwriting, portfolio management, and valuation oversight, supported by an experienced, globally distributed investment team and formal ASC 820-compliant valuation processes. The Company had fully funded capital commitments of $568.7 million as of December 31, 2025 and pursues disciplined, covenant-driven lending with SOFR-based pricing and five- to seven-year target durations.