This is part of a trend of consolidation in private credit – with scale being seen as key to winning assets in an increasingly competitive market. Other acquisitions include BlackRock buying HPS, TPG buying Angelo Gordon, Stonepeak buying Boundary Street Capital, and Blue Owl buying Atalaya.
M&G Investments is buying 70% of P Capital Partners (PCP). Management retains the rest.
PCP is a Stockholm-headquartered private credit fund manager.
PCP invests €10m to €125m tickets in non-sponsor backed companies in Northern Europe. Their AUM is €4bn.
For M&G, this is a small addition to its total £350bn AUM – but adds to M&G’s deal origination and investment expertise in the fast-growing and profitable private credit market. M&G’s prior private and structured credit AUM is £19bn.
Joseph Pinto, CEO of M&G investments – M&G wants to become the “European champion” in private markets.
At a market level, private credit has $1.5tn in AUM and this is growing by over 10% per year (S&P).
This acquisition is expected to close in mid-2025.
P Capital Partners
PCP was established in 2002 as a investment strategy in a family office. It was spun out of the family office through a management buyout in 2009.
The firm has 42 employees.
PCP has invested in more than 170 companies since inception.
PCP runs three private credit strategies – “Corporate Credit”, “Transition Partner” and “Growth”.
The Corporate Credit Strategy provides senior secured loans to private companies.
The Transition Partner Strategy lends to companies working towards environmental transition and sustainability trends.
The Growth Strategy lends to entrepreneur-led statups that are scaling.