(Bloomberg) -- Investment manager Barings sued Corinthia Global Management and former employees Ian Fowler and Kelsey Tucker after the upstart private credit firm poached more than 20 employees in one of the largest team lifts at an alternative asset manager in recent years.

The poaching shocked the private credit industry, which has grown to $1.7 trillion in assets under management globally. The industry has expanded quickly as more firms seek exposure to a corner of the loan market that can appear less volatile and offer higher returns, but starting a new asset manager remains difficult given the limited talent pool in the niche. 

Corinthia, a new private credit manager backed by Nomura Holdings Inc., officially launched last Thursday after hiring Barings employees from London and the US focused on corporate direct lending.

The lawsuit describes Corinthia’s move as “one of the largest corporate raids at an asset manager in years” and alleges Fowler and Tucker misused confidential information in an effort to recruit Barings employees to the new venture.  

Fowler previously served as a co-head of Barings’ global private finance group and resigned March 8, according to the lawsuit. Tucker was the company’s global head of operations until January 2023. 

“There are a lot of assumptions in there,” a Corinthia spokesperson said. “Corinthia will review the documents and our lawyers will respond.”

Fowler and Tucker didn’t immediately respond to requests for comment. 

Proceedings Commenced

“Barings has today commenced legal proceedings seeking a temporary restraining order and preliminary injunction to prevent them from continuing to target our clients and employees, and stop the ongoing misappropriation of our trade secrets and confidential information,” a Barings spokesperson said in a statement. 

“This legal action has been taken as a result of the defendants’ blatant disregard of their fiduciary and contractual obligations, which goes against Barings’ codes of conduct and ethics,” the spokesperson added. “Barings will not sit idly by and allow the defendants’ misconduct to occur.”

Corinthia approached Barings and parent MassMutual about buying certain Barings assets and overseeing some of its portfolios, Bloomberg previously reported. Both Barings and MassMutual “have unequivocally rejected” Corinthia’s term sheet and said they have no interest in a deal, according to the lawsuit. 

Through the lawsuit, Barings is seeking to stop Corinthia from poaching more employees, block it from soliciting Barings customers and seeking damages resulting from the team lift, among other things.

The case is Barings LLC vs Ian Fowler, 24CV012798-590, Mecklenburg Superior Court in North Carolina.

(Updates with comment from Corinthia and more information on lawsuit.)

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