M&G Investments has received regulatory approval for a Long-Term Asset Fund (LTAF), marking the first time its flagship diversified private credit strategy will be available to UK Defined Contribution (DC) pension schemes.
M&G says this approval is a step forward in its effort to expand its £73 billion private markets business and broaden access to its long-term investment strategies.
The LTAF is aimed at the expanding UK DC market, which is expected to rise to £1.39 trillion by 2033. The M&G Diversified Private Credit Feeder LTAF offers access to a diversified portfolio of private credit, structured credit, and asset-backed debt, providing attractive income in an evergreen format.
LTAFs allow UK investors to access illiquid assets that provide greater returns and diversity, such as infrastructure, real estate, credit, and private equity. M&G’s first European Long-Term Investment Fund, launched in 2023, is a €850 million strategy focused on corporate private credit opportunities and is managed by the same team.
M&G Investments chief investment officer of private markets Emmanuel Deblanc says: “M&G is committed to the UK’s DC market where investment innovation and access to private markets strategies is an important area of focus. We are playing our part in this using the force of our long-established private markets business and our experience of managing diversified private credit for UK pensions since 2012.
“This approval sets the stage for future growth of our private markets solutions for our DC pensions clients enabling them to efficiently and flexibly integrate private markets solutions to deliver resilient returns, improve diversification and ultimately, deliver better member outcomes.”
