London 6 February – M&G Investments today announces that it has agreed to acquire a majority stake in P Capital Partners (PCP). A leading European private credit business in the corporate non-sponsor sector, it supports entrepreneurs and family-owned businesses to grow and sustainable technologies to scale.
With origins dating back to 2002, PCP boasts one of the longest track records in European direct lending, using the same cycle-tested investment process to invest in more than 170 companies. 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’ £73 billion private markets business, complementing its established £19 billion private credit and structured credit teams and broadening its client offering in a segment where PCP already has strong relationships and an extensive origination network. Based in Stockholm with a team of 45, PCP has raised circa €7 billion since inception. M&G will acquire 70% 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, whilst strengthening PCP’s capabilities and plans for continued European expansion.
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. Investing in private credit strategies on behalf of external clients and its Life business, including through the £129 billion With Profits Fund, M&G’s private markets business enables these clients to gain access to new sources of higher yielding investment strategies. M&G’s With Profits Fund invests and manages the long-term savings of 4.6 million UK policy holders, including 450,000 clients in PruFund.
Valued at approximately $1.5 trillion¹, the global private credit market has become an increasingly attractive asset class for institutional investors, driven by the potential for higher yields and diversification benefits. Estimates indicate that institutional allocations to private credit have grown by more than 10%¹ annually, reflecting a broader trend to capitalise on the stability and returns offered by this asset class.
Moelis & Company UK LLP acted as exclusive financial adviser and Goodwin Procter and Mannheimer Swartling acted as legal advisers to P Capital Partners. Fenchurch Advisory Partners acted as financial adviser and Freshfields and Gernandt & Danielsson Advokatbyrå KB acted as legal advisers to M&G.
