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28 September 2022

M&G finances tech rental firm Grover through innovative Asset Backed Security deal

2022
London, 28 September 2022 – M&G announces it has agreed a funding deal with leading consumer-tech subscription platform, Grover. The proceeds from the €270 million Asset Backed Security will be used to expand the firm’s product inventory and grow its presence in existing European markets.

Grover’s committed to accelerating a societal shift away from tech ownership to a rental model designed to keep products in use for longer and precious materials out of landfill. The firm’s products are returned, refurbished and recirculated until the end of their usable life. Across its usable life, an average device is recirculated to four different users over several years.

Grover has seen rising demand from customers in Europe, through its operations in Germany, Spain, Netherlands, and Austria. Subscribers get access to a wide range of over 5,000 tech products, including smartphones, laptops, virtual reality gear, wearables and smart home appliances on a flexible monthly rental basis.

M&G is the sole investor across the debt tranches of the bi-laterally negotiated pan-European Asset Backed Security with Grover providing the equity capital. The investment has been made on behalf of a range of M&G’s clients, including the Prudential With Profits Fund through M&G’s Catalyst strategy, which is investing up to £5 billion into innovative privately-owned global businesses working to create a more sustainable world, along with the M&G Impact Financing strategy and diverse range of pension fund and insurance investors.

Will Nicoll, CIO of Private & Alternative Assets, M&G, says: “Grover’s focus on developing sustainable ways to access technology is changing consumer habits for the better. By providing financing through the form of an Asset Backed Security, we are helping Grover to expand its reach, while seeking to provide our pension fund and institutional clients with attractive cashflows."

Michael Cassau, Founder and Chief Executive Officer of Grover, says: “We are delighted to welcome M&G to our roster of investors. M&G's sustainable approach to investing makes them the ideal strategic partner for our circular business model. The partnership will be valuable to help us develop our impact metric, measuring the positive impact we have on society, by reducing debt dependency and offering affordable access to technology, and on the planet, by elongating the lifetime of devices and reducing e-waste.”

Media enquiries

Irene Chambers

Media Relations

Notes to editors

The Catalyst investment strategy sits within the Private & Alternative Assets division at M&G. With over two decades of experience in private asset investment, M&G already manages over £76.7 billion in private credit, private equity and real estate on behalf of Prudential policyholders and external clients.

Drawing on this expertise and track record in private assets, Catalyst seeks opportunities across the globe to invest in unlisted businesses where capital is needed to drive innovation and impact.

Size of Private and Alternative Assets team (£76. billion), as at 30 June 2022.
Grover is the global leader in technology rentals, enabling people to subscribe to tech products monthly instead of buying them. Founded in 2015 by Michael Cassau, Grover’s mission is to make exceptional technology more accessible, because technology is a basic human right. With Grover, subscribers get access to a wide range of over 5,000 tech products, including smartphones, laptops, virtual reality (VR) gear, wearables and smart home appliances on a flexible monthly rental basis. Grover’s service allows its users to keep, switch, buy, or return products depending on their individual needs and budget. Rentals are available in the U.S., Germany, Austria, the Netherlands and Spain at GROVER.COM, as well as in Germany through Grover’s online and offline partner network, including Europe’s leading electronics retail group, MediaMarktSaturn. Grover is a pioneer in the advancement of the circular economy. Its business model of renting out tech products to several users across their life cycle allows maximum value to be extracted from each product and reduces e-waste.
M&G Investments is part of M&G plc, a savings and investment business which was formed in 2017 through the merger of Prudential plc’s UK and Europe savings and insurance operation and M&G, its wholly owned international investment manager. M&G plc listed as an independent company on the London Stock Exchange in October 2019 and has over €400 billion of assets under management (as at 30 June 2022). M&G plc has customers in the UK, Europe, the Americas and Asia, including individual savers and investors, life insurance policy holders and pension scheme members.

For nearly nine decades M&G Investments has been helping its customers to prosper by putting investments to work, which in turn creates jobs, homes and vital infrastructure in the real economy. Its investment solutions span equities, fixed income, multi asset, cash, private debt, infrastructure and real estate.

M&G recognises the importance of responsible investing and is a signatory to the United Nations Principles for Responsible Investment (UNPRI) and is a member of the Climate Bonds Initiative Partners Programme.

M&G plc has committed to achieve net zero carbon emissions on its total book of assets under management and administration by 2050 and committed to reduce operational carbon emissions as a corporate entity to net zero by 2030.

For more information, please visit: https://global.mandg.com/
This press release reflects the authors’ present opinions reflecting current market conditions; are subject to change without notice; and involve a number of assumptions which may not prove valid. It has been written for informational purposes only and should not be considered as investment advice or as a recommendation of any particular security, strategy or investment product.

Past performance is not a guide to future performance.
The services and products herein are available only to investment professionals and are not available to individual investors, who should not rely on this communication. Information given in this document has been obtained from, or based upon, sources believed by us to be reliable and accurate although M&G does not accept liability for the accuracy of the contents.

This financial promotion is issued by M&G Luxembourg S.A. (unless otherwise stated). The registered office of M&G Luxembourg S.A. is 16, boulevard Royal, L-2449, Luxembourg.”
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M&G plc is a company incorporated and with its principal place of business in England, and its affiliated companies constitute a leading savings and investments business. M&G plc is the direct parent company of The Prudential Assurance Company Limited. The Prudential Assurance Company Limited is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in England and Wales.

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M&G plc, incorporated and registered in England and Wales. Registered office: 10 Fenchurch Avenue, London EC3M 5AG. Registered number 11444019. M&G plc is a holding company, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority.

M&G plc is a company incorporated and with its principal place of business in England, and its affiliated companies constitute a leading savings and investments business. M&G plc is the direct parent company of The Prudential Assurance Company Limited. The Prudential Assurance Company Limited is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in England and Wales.

M&G plc は、イングランド及びウェールズで設立・登録。本社登録地は10 Fenchurch Avenue, London EC3M 5AG。登録番号11444019。M&G plcは持ち株会社で、その子会社の一部はPRA(健全性監督機構)及びFCA(金融行為規制機構) に認可され、それらの規制対象となっています。

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M&G plc, incorporated and registered in England and Wales. Registered office: 10 Fenchurch Avenue, London EC3M 5AG. Registered number 11444019. M&G plc is a holding company, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority.

M&G plc is a company incorporated and with its principal place of business in England, and its affiliated companies constitute a leading savings and investments business. M&G plc is the direct parent company of The Prudential Assurance Company Limited. The Prudential Assurance Company Limited is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in England and Wales.