SYDNEY, Australia — Paul Weightman, a former rugby lawyer from Australia, is making waves in the world of private credit with his audacious recruitment of more than 20 senior executives from asset manager Barings. This move has already sparked litigation and is transforming Weightman’s nascent investment business, Corinthia Global Management. However, Weightman’s tactics show similarities to his earlier career as a lawyer in Australian rugby league, where he poached disaffected sports stars during the “Super League war.” Weightman’s success in attracting a whole team of private credit experts from Barings highlights the importance of having a team excited about a new opportunity when recruiting for a new platform.
The departure of senior executives from Barings to Corinthia has given Weightman insight into his hiring methods. It has been revealed that as early as August 2023, Weightman began sending LinkedIn invitations and messages to key Barings executives who later joined him at Corinthia. Weightman’s direct approach, despite providing evidence to Barings of how he poached their staff, proves effective in his recruitment process. He believes that talking to people directly rather than through headhunters is more impactful.
In other news, US institutional investors, including pension funds and endowments, are selling more of their private equity holdings at a discount as they reduce exposure to this illiquid asset class. Jefferies reports that investors sold 99% of their private equity holdings at or below their net asset value on the secondary market last year. This trend has been attributed to the lackluster performance of stock listings and mergers and acquisitions as exit opportunities for private equity investors. Pension plans, in particular, are resorting to the secondary market to raise cash quickly and meet their payout requirements.
The decline in popularity of investment trusts in the UK is also making headlines. These trusts, which act as closed-ended investment funds, have faced challenges due to higher interest rates luring investors into government bonds and the rise of alternative investment vehicles like exchange-traded funds. The value of their assets held has dropped, leading to a discrepancy between their share prices and asset values. Hedge funds such as Elliott Management and Saba Capital have targeted these trusts, further exacerbating the sector’s struggles.
Finally, the Centre Pompidou’s retrospective on modernist artists Constantin Brâncuși and Pablo Picasso has been described as exquisite and enchanting. The exhibition showcases the white magic that characterizes the works of these two founders of Modernist art. The retrospective highlights the profound influence these artists had on the art world and their enduring legacies.
As Weightman continues to shake up the private credit industry, institutional investors navigate the challenges of the private equity market, and investment trusts face declining popularity, the world of finance remains ever-evolving. With exhibitions like the one at the Centre Pompidou showcasing the lasting impact of artistic pioneers, the intersection of art and finance reminds us of the transformative power of creativity.