M&G Investments is acquiring a majority stake in P Capital Partners, a European private-credit business, in a move to bolster its private markets capabilities.

Based in Stockholm with a 45-strong team, P Capital Partners has raised around €7bn since its inception in 2002. M&G will acquire 70% of P Capital Partners, with its management retaining the remaining equity stake following the transaction.

There will be no changes to P Capital Partners’ management team or investment strategies as a result of the deal with M&G, the manager added.

P Capital Partners has invested in more than 170 companies. It specialises in providing bespoke financing solutions to mid-sized businesses in the corporate non-sponsor sector, supporting entrepreneurs and family-owned businesses to grow, and sustainable technologies to scale.

P Capital Partners will become part of M&G Investments’s £73bn (€87bn) private markets business, complementing its established £19bn private credit and structured credit teams and broadening its client offering in a segment where P Capital Partners already has strong relationships and an extensive origination network.

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’s 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.”

He said the two firms would “aim to create economic value and positive social impact by supporting entrepreneurs who drive sustainable innovation”.

Deblanc noted: “Through M&G’s global distribution platform, P Capital’s capabilities will be more widely available in Europe and Asia, in turn supporting their growth ambitions.”

Daniel Sachs, founder and CEO 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.”

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

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