Experts in private markets

As a pioneering investor in private markets, we have been actively involved in shaping the development of private markets in Europe since 1997

 

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

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Investment professionals

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Assets Under Management (AUM)

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Years investing in private markets

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 European 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.

Emerging Markets Impact

  • Climate Finance
  • Financial Inclusion
  • Sustainable Food

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.

Private Equity – Catalyst 

  • Private Equity
  • Catalyst

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.

Infrastructure Equity 

  • Brownfield
  • Greenfield

Real Estate

Investing on behalf of Prudential Assurance Company for generations, our 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.

Real Estate Debt

  • UK and EU Senior Debt
  • UK and EU Junior Debt
  • UK and EU Blended Debt

Long Lease Inflation-Linked

  • UK Long Lease
  • EU Long Lease
  • UK Income Strips

Pan-Regional Diversified

  • Core EU
  • Core APAC

Residential

  • UK Living
  • EU Living
  • UK Affordable

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 is one of Europe’s largest private asset investors, with private markets accounting for around 25% of our total AUM. Our capabilities span across real estate, alternatives, infrastructure, private equity, private debt and more.

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

Investing in private assets

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