(Bloomberg) -- Barings LLC is pausing making new investments across certain private credit funds while they transition to new leadership, after over 20 employees left for upstart Corinthia Global Management. 

“In accordance with and as permitted by the fund documents, we will continue to call capital to pay down financing facilities, to honor previously committed or approved deals, add-ons or unfunded facilities, or for expenses,” a client letter seen by Bloomberg News states.

“For our commingled private funds and our private segregated funds, regardless of whether a key person event has been triggered, we are pausing on making brand new investments while we continue the transition to new investment leadership. We will continue to fund existing commitments,” the letter says.

A spokesperson for Barings clarified that while certain private-credit funds are paused, the firm is still able to invest across vehicles such as its business development company and other funds across North America, Europe and Asia-Pacific. “We will continue to provide meaningful capital support to our many sponsor clients across the market,” the spokesperson told Bloomberg News.

About 22 employees left Barings en masse a few weeks ago, including co-heads of the private credit strategy Adam Wheeler and Ian Fowler.  

The team was poached by Corinthia Global Management, a platform backed by Nomura Holdings Inc., in one of the largest so-called team lifts at an alternative asset manager in recent years.

In response, Barings has appointed Bryan High — who’s been with the firm since 2007 — as head of global private finance, while Eric Lloyd is serving as chairman of the division. They have put in place interim investment committees for private finance in North America, Europe and Asia-Pacific.

Tyler Gately was named head of private credit in North America, and Stuart Mathieson become head of private credit in Europe and Asia-Pacific.

The firm “remains well-supported by a platform of more than 80 private credit team members,” the letter states. “We have also put into place a robust retention plan to ensure consistency and continuity as we move forward.”

Barings is suing Corinthia Global Management, Fowler and another former employee, Kelsey Tucker, Bloomberg reported earlier on Monday.

Read more: Barings Sues Corinthia, Fowler Over Private Credit Defection

(Updates throughout, including spokesperson clarification)

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