M&G Investments agreed to acquire a majority stake in Stockholm-based P Capital Partners (PCP), a private credit business in the corporate non-sponsor sector which supports entrepreneurs and family-owned businesses.
PCP will become part of M&G Investments’ £73 billion private markets business, complementing its established £19 billion private credit and structured credit teams and broadening its client offering in a segment where PCP already has strong relationships and an extensive origination network.
Based in Stockholm with a team of 45, PCP has raised circa €7 billion since inception. M&G will acquire 70% of PCP, with its management retaining the remaining equity stake following the transaction. There will be no changes to PCP’s management team or investment strategies as a result of the deal with M&G.
“With origins dating back to 2002, PCP boasts one of the longest track records in European direct lending, using the same cycle-tested investment process to invest in more than 170 companies,” said M&G Investments.
“It specialises in providing bespoke financing solutions to mid-sized businesses who often encounter challenges in securing loans through traditional channels and may not wish to sell equity stakes to fuel growth.
“PCP has been offering sustainability-linked loans for the past decade and has a strong reputation for investing with purpose, which has gained traction with large institutional investors.”
M&G Investments CEO Joseph Pinto 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, said: “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 Partners, said: “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. A win for entrepreneurs, family owned businesses and the sustainable transition that they drive when given the opportunity to achieve their full potential.”