M&G Investments has acquired a majority stake in the European private credit business, P Capital Partners (PCP).
This firm operates provides funding to help entrepreneurs and family-owned businesses to grow and sustainable technologies to scale.
PCP has been operating sine 2002, one of the longest track records in European direct lending sector. It specialises in providing bespoke financing solutions to mid-sized businesses who often encounter challenges in securing loans through traditional channels and may not wish to sell equity stakes to fuel growth.
PCP has been offering sustainability-linked loans for the past decade and has a strong reputation for investing with purpose, which has gained traction with large institutional investors.
PCP will become part of M&G Investments’ £73bn private markets business, complementing its established £19bn private credit and structured credit teams —
Based in Stockholm with a team of 45, PCP has raised around €7bn since inception. M&G will acquire 70 per cent of PCP, with its management retaining the remaining equity stake following the transaction.
There will be no changes to PCP’s management team or investment strategies as a result of the deal with M&G.
The acquisition further underpins M&G’s strategic growth plans and cements its position a leader in European private assets, adding differentiated investment and origination expertise.
M&G’s private corporate credit lending capabilities stretch back nearly 25 years, when it was the first non-bank lender to invest in European leveraged loans.
It invests in private credit strategies on behalf of external clients and its Life business, including through the £129bin With Profits Fund,
M&G’s private markets business offers clients exposure to new sources of higher yielding investment strategies. This include its external clients and its life business. This includes 4.6m UK policyholders, invested in with £129bn with profits fund and the the 450,000 clients invested in its PruFund pension.
M&G Investments chief executive officer Joseph Pinto says: “This acquisition of a majority stake in P Capital Partners is in line with our growth strategy in private markets.
“P Capital Partners’ capability in the corporate non-sponsor sector and 20-year track record will offer our clients access to a wider range of differentiated offerings and improve our ability to better serve clients. Combined with our scale and distribution reach, it is a powerful, highly effective and distinctive combination.”
The transaction is expected to close in mid-2025, subject to regulatory approvals.
