SYDNEY, Australia – Paul Weightman, an Australian businessman with a history of high-profile corporate battles, is making waves once again. After successfully poaching over 20 senior executives from asset manager Barings, Weightman’s audacious move has already sparked litigation. As the founder of Corinthia Global Management, a nascent investment business, Weightman’s controversial tactics have raised eyebrows in the financial world.
Before his foray into the investment sector, Weightman made a name for himself as a lawyer in Australian rugby league. His involvement in the “Super League war,” a contentious split in the rugby league initiated by media mogul Rupert Murdoch, showcased his talent for recruiting disaffected sports stars.
Weightman draws parallels between his past exploits and the recent Barings raid, highlighting the importance of assembling a motivated team when venturing into new territory. Corinthia, launched publicly only seven months ago, aims to capitalize on the thriving private credit market, which has surged to $1.7tn in the wake of reduced lending from traditional banks after the financial crisis.
However, the mass defection of key executives from Barings to Corinthia has caused disruption within Barings’ $33bn private credit division. Fitch Ratings recently downgraded Barings’ US-listed private credit vehicle due to “recent turnover in the direct lending team.” Although Barings has expressed its commitment to continuing business operations and investing through other avenues, the impact of the departure is evident.
The legal implications of the poaching spree have affected both Corinthia and Barings. Barings obtained a preliminary injunction against Corinthia and its key employees in a North Carolina court, restricting their ability to solicit Barings’ clients, hire its employees, or utilize its confidential information.
Nevertheless, Weightman remains undeterred, stating that his new venture continues to thrive despite the legal challenges. While some of the former Barings employees are due to join Corinthia soon, others are still fulfilling their obligations. Weightman’s previous experience as the founder of Australian real estate investment firm Cromwell, combined with his connection to Adam Wheeler, the co-head of Barings’ private finance group, contributed to the motivation behind the recruitment drive.
In its lawsuit against Corinthia, Barings has accused Weightman of attempting to purchase its private credit operation at a significantly reduced price. Weightman defends his approach, stating that he sought to engage in open dialogue and reach a negotiated position swiftly. Evidence submitted by Barings indicates that Weightman directly communicated with key executives months before the exodus, using LinkedIn invitations and messages linked to their work email addresses.
While Weightman’s direct recruitment method has left a paper trail for Barings to follow, he remains unfazed. He sees the direct approach as more effective than relying on headhunters and remains willing to repeat the tactic in the future.
Weightman’s audacious moves and legal battles have put him in the spotlight once again. As the private credit market continues to flourish, the fallout from his recruitment spree raises questions about the boundaries of competition and the ethics of aggressive talent acquisition in the financial world.