On October 8, 2025, Principal Financial Group announced a partnership with Barings to allocate up to $1 billion in bespoke private investment‑grade portfolio finance investments. The arrangement will be structured as a separately managed account and a co‑investment structure managed by Principal Asset Management.
The deal expands Principal’s general account portfolio and enhances its private credit platform. Barings will act as the asset originator manager, while Principal Asset Management will oversee the co‑investment structure, leveraging its expertise in real estate, mid‑market direct lending, private corporate, and infrastructure credit.
The partnership aligns with Principal’s strategy to diversify and scale its private markets exposure, providing policyholders and shareholders with risk‑adjusted returns that match the company’s liabilities. The $1 billion allocation represents a significant addition to Principal’s private credit capacity and is expected to strengthen the firm’s capital position and fee generation.
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