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 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
Our private credit strategies draw on M&G’s longstanding expertise and significant dedicated resources, having first begun investing in the asset class in 1997. This scale creates superior access to assets, enabling us to take advantage of new opportunities as they emerge. Our recent offerings build on this experience, using multiple market access points to capture the most compelling opportunities from across the private credit universe, whilst improving investor accessibility to these assets through modern fund structures. Predominantly floating rate, the strategies can offer defence against rising rates, enhanced yield versus public assets, as well as diversification and downside protection.
Private equity
Our private equity strategy's track record dates back to 2000. Since then, we’ve continued investing in best of breed managers, securing capacity in hard-to-reach funds complimented with high conviction co-investment opportunities. Allocations are diversified across manager, geography, and investment style; buyout and growth as core allocations with satellite positions in areas such as special situations and venture capital. Through the full market cycle we have seen the performance and diversification benefits that private equity allocations can bring to a traditional portfolio.
Real assets
Our real assets strategy offers exposure to a diverse pool of infrastructure, agricultural and natural capital opportunities. These are accessed through a blend of specialist partner funds, co-investments and direct investments. The strategy dates back to the late 1990s and aims to consistently deliver attractive returns with downside and inflation protection independent of traditional markets.
The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. The views expressed on this webpage should not be taken as a recommendation, advice or forecast. Past performance is not a guide to future performance.
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
