Private markets at M&G Investments
At M&G Investments we have been actively investing in private markets for over 25 years, navigating economic cycles with our innovative thinking.
Private market investments, which are not traded on stock exchanges and can include private equity, private debt and real estate, have historically been dominated by institutional investors. However, the so-called ‘democratisation’ of private assets is broadening access to the asset class. Regulatory changes and new product developments are making private assets available to a much wider spectrum of investors, which could drive the growth in private markets in the coming years.
Combining scale and experience to access attractive opportunities
Extensive knowledge and resources to capture a growing opportunity set
A philosophy founded upon rigorous fundamental analysis
Source: M&G 31 December 2023.
Our private markets capabilities
Private
credit
Since 1997, M&G Investments has established itself as a market leader in the European private credit universe. Our strategies offer institutional and wholesale investors access to a range of liquid and illiquid diversified and corporate private debt offerings, accessible through various fund structures.
We leverage our scale, tenure and access to select the right assets at the right price, prioritising our clients’ interests and investing alongside them over the long term.
Private corporate credit
- European loans
- Sustainable loans
- Direct lending
- Flexible private corporate debt
- Collateralised loan obligations (CLOs)
Diversified private debt
- Diversified private debt investment grade
- Diversified private debt non-investment grade
- Impact private credit
Structured
credit
M&G Investments has been an established investor and consistent presence within Structured Credit markets for over two decades, generating differentiated deal flow and access for our clients.
Our dedicated investment proposition includes a range of strategies and scalable solutions that span the full Investment Grade and High Yield & Private Structured Credit universe – with the ability to target different risk-reward and liquidity profiles, suited to a broadening investor base.
Asset backed securities (ABS)
- Senior ABS
- High grade ABS
- Investment grade mezz ABS
- Best opportunities (high yield)
- Significant risk transfer
Specialty finance
- Specialty finance
responsAbility
responsAbility's core expertise is and always has been, investing to change the outcomes of the most pressing issues of our time. We invest thematically within three fundamental areas of Financial Inclusion, Climate Finance & Sustainable Food where capital is scarce, mostly in emerging markets.
Impact and
private equity
M&G Investments has been an active investor in private equity since the late 1990s. The Private Equity and Real Assets teams have a long history of allocating to managers from around the world, complementing their fund exposure with ‘hard to source’ co-investments.
The Catalyst team drives investment capital to direct opportunities, predominantly at the growth equity stage to scale innovative businesses tackling some of the biggest social and environmental challenges.
Real assets
- Real assets
Infracapital
Infracapital is one of the leading European infrastructure investors, founded in 2001 and since investing in over 60 businesses across Europe.
Its innovative investment approach through both buy and build strategies seeks to create a diversified portfolio of European infrastructure assets that can deliver long-term sustainable growth for clients.
Real
estate
M&G Investments is one of the world’s largest real estate investment managers1, with over $45 billion2 of real estate debt and equity investments under management globally. Our global real estate platform is built on scale, tried and tested strategies and robust research, with the breadth of capabilities to pursue relative value through market cycles and across the capital stack.
Investing on behalf of Prudential Insurance for generations, we have the strength of capital to back our investment convictions though scalable strategies and meaningful co-investments. Across our global portfolio, we take an intentional approach to sustainability, with 90% of assets submitted in the GRESB 2023 Real Estate Assessment awarded a 4 Star rating or above3.
1IPE Top 150 Real Estate Investment Managers 2023. 2 M&G as at 31 March 2024.3 GRESB 2023 Real Estate Assessment results.
All of our strategies offer the ability to deliver bespoke solutions, across co-investments, segregated mandates and investment partnerships.
Our private markets assets under management
By asset class (%)
M&G Investments is one of Europe’s largest private markets investors, with assets accounting for around 25% of our total AUM. Our capabilities span across private and structured credit, real estate, infrastructure, and private equity.
Source: M&G, as at 31 December 2023
Widening access to a growing asset class
Global private markets have expanded significantly since the global financial crisis as more and more investors have been attracted by the potential of higher returns compared to traditional public market investments as well as portfolio diversification benefits.
Private markets assets are forecast to reach $29 trillion by 2027, up from $20 trillion in 2022*, driven, in part, by the shifting sands between public and private markets. With companies opting to stay private for longer, an enlarging opportunity set – across private debt and private equity in particular – is emerging for investors.
Gaining entry to private assets needn’t be a challenge. As private markets continue to evolve, a changing regulatory landscape, including the introduction of new fund structures such as the European Long-Term Investment Fund, is helping redefine the space.
These developments have improved accessibility and enabled the creation of a range of different products offering investors exposure to the diverse spectrum of this previously hard-to-access world, opening the doors for a broader client base to incorporate private assets into their portfolios.
*Source: BCG’s Global Asset Management Market Sizing, 2023