Wednesday, August 30, 2017

What Is a Direct Investment?


North Carolina resident Thomas “Tom” Finke is an investment executive and graduate of the University of Virginia and Duke University. Currently, Thomas Finke serves as chairman and CEO of Barings, LLC, an investment management firm with over $275 billion in assets under management and more than 1,700 employees in 17 countries.

Barings is a part of the MassMutual Financial Group that provides services in five core investment markets: global fixed-income, equities, real estate, multi-asset, and alternative investments, with the latter including direct investments.

A direct investment involves acquiring a large enough ownership share of a corporation to obtain control over it. These investments can be accomplished by securing a majority share of a company's ownership or acquiring a large enough minority share to hold controlling interest in a firm. An investor holds a majority share when they have greater than 50 percent of a corporation’s stock, while a minority share indicates ownership of less than 50 percent of company equity. 

Direct investments can also refer to investment in foreign companies. At Barings, direct investment services focus on the acquisition of a controlling interest in real assets and private equity businesses in four sectors: capital assets, infrastructure, intangible assets, and natural resources.