Barings will acquire Australia-based Gryphon Capital Partners, the parent company of Gryphon Capital Investments.

GCI serves as the investment manager of Gryphon Capital Income trust.

Barings said the acquisition will allow Gryphon to scale its investment strategy through Barings' global platform. In turn, Barings will expand its global structured solutions in Asia Pacific and boost its entry into the Australian wealth market.

The financial terms of the deal were not disclosed.

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Gryphon will bring AUD$2.6bn (£1.4bn) in assets under management to the global investment manager, and the firm's staff will join Barings' global structured finance team.

Steven Fleming and Ashley Burtenshaw will continue as portfolio managers for GCI.

Mike Freno, Barings' chair and CEO, said the M&A deal will expand the company's on-the-ground presence in Australia and provide access to "origination opportunities and investment solutions that meet the evolving needs of our clients".

The transaction is expected to close on 31 March 2023, and builds on Barings' acquisition of Australian real estate firm Altis Property Partners in August 2022.