London-based asset manager M&G Investments is to acquire a majority stake in Stockholm-based private credit business P Capital Partners for an undisclosed sum.

The firm works across the European private credit business in the corporate non-sponsor sector, supporting entrepreneurs and family-owned businesses to grow and sustainable technologies to scale.

Founded in 2002, PCP – which has a workforce of 45 and has raised around €7bn since inception – claims to have one of the longest track records in European direct lending, specialising in providing bespoke financing solutions to mid-sized 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.

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.

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.”

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

Source: Fund Europe