M&G Investments agreed to acquire a majority stake in European private credit business P Capital Partners, in a move that supports its strategic growth plans and private markets business.
The £346.1 billion ($422.4 billion) asset manager plans on taking a 70% stake in the business, a spokeswoman said.
PCP, which focuses on the corporate non-sponsor sector, has €3.8 billion ($3.9 billion) in assets under management and is based in Stockholm with a team of 42 people. CEO and founder Daniel Sachs, alongside the senior management team, retain the other 30% of the business, and there will be no changes to existing relationships, agreements or commitments, she added. Investment processes and decision-making authority remains with PCP.
PCP will sit alongside M&G’s £19 billion private credit and structured credit teams, which form part of the manager’s £73 billion private markets business. PCP specializes in providing tailored financing solutions to mid-sized businesses, and has also been offering sustainability-linked loans for the last decade.
“This acquisition of a majority stake in P Capital Partners is in line with our growth strategy in private markets where we have the ambition to become the European champion,” said Joseph Pinto, CEO of M&G Investments, in the release. “P Capital Partners’ capability in the corporate non-sponsor sector and 20-year track record will offer our clients access to a wider range of differentiated offerings and improve our ability to better serve clients. Combined with our scale and distribution reach, it is a powerful, highly effective and distinctive combination.”
Emmanuel Deblanc, CIO of private markets at M&G Investments, added that the two firms “will aim to create economic value and social impact by supporting entrepreneurs who drive sustainable innovation,” adding that PCP’s capabilities will be more widely available in Europe and Asia through M&G’s global distribution platform.
The deal is expected to close in the middle of the year, subject to regulatory approvals.
Pinto told Pensions & Investments in an interview earlier this year that the firm needed to “enlarge” in private debt. It also took a majority stake in European real estate manager BauMont Real Estate Capital in November.
