P Capital Partners joins forces with M&G

Today we announce the news that P Capital Partners is joining forces with leading international savings and investments business M&G, with M&G acquiring a majority stake in our business, while management of P Capital Partners remain as significant minority shareholders.

P Capital Partners will become part of M&G Investments’ £73 billion private markets business. We will complement its established £19 billion private credit and structured credit teams and broaden its client offering in a hard-to-access, but less crowded segment where we already have strong relationships and an extensive origination network.

It’s a partnership that will unlock tremendous growth opportunities for P Capital Partners and, most importantly, for the companies and projects that we support. The decision brings together the best of both firms - our shared values, our talented people, and our commitment to excellence. With our combined expertise and resources, we will be able to provide even greater support, expanded networks, and enhanced financial capabilities to help entrepreneurs and family-owned businesses grow and sustainable technologies to scale. 

The 45-strong Stockholm based P Capital Partners team has raised circa €7 billion and partnered with over 175 companies since inception. There will be no changes to the P Capital Partners management team or investment strategies as a result of the deal with M&G.

This acquisition further underpins M&G’s strategic growth plans and ambition to be a leader in European private assets, adding differentiated investment and origination expertise, whilst strengthening P Capital Partners’ capabilities and plans for continued European expansion.

M&G’s private corporate credit lending capabilities stretch back nearly 25 years, when it was the first non-bank lender to invest in European leveraged loans. By investing in private credit strategies on behalf of external clients and its Life business, including through the £129 billion With Profits Fund, M&G’s private markets business enables these clients to gain access to new sources of higher yielding investment strategies. M&G’s With Profits Fund invests and manages the long-term savings of 4.6 million UK policy holders, including 450,000 clients in the market leading PruFund. 

Valued at approximately $1.5 trillion, the global private credit market has become an increasingly attractive asset class for institutional investors, driven by the potential for higher yields and diversification benefits. Estimates indicate that institutional allocations to private credit have grown by more than 10%¹ annually, reflecting a broader trend to capitalise on the stability and returns offered by this asset class.

Joseph Pinto, Chief Executive Officer of M&G Investments, said: “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. 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, Chief Investment Officer of Private Markets at M&G Investments, added: "Increased access to direct investments is essential for early-growth entrepreneurs to scale without losing control or incentives. Together with P Capital Partners, we will aim to create economic value and positive social impact by supporting entrepreneurs who drive sustainable innovation. Through M&G’s global distribution platform, P Capital Partners’ capabilities will be more widely available in Europe and Asia, in turn supporting their growth ambitions. We look forward to working with P Capital Partners to drive future growth for our clients.” 

Daniel Sachs, Founder and Chief Executive of P Capital, added: “Tailored and creative funding to support entrepreneurs to drive innovation and growth is more critical than ever. Together with M&G, we are well-positioned to make uncompromised funding more accessible. It’s a win for entrepreneurs, family-owned businesses and the sustainable transition that they drive when given the opportunity to achieve their full potential.” 

The transaction is expected to close in mid-2025, subject to regulatory approvals.