M&G Investments is boosting its private credit offering with the acquisition of a 70 per cent stake in Stockholm-based P Capital Partners (PCP).

PCP has more than €3.8bn (£3.2bn) in assets under management across three private credit strategies, with a particular focus on non-sponsored corporate direct lending.

It has also been offering sustainability-linked loans for the past decade.

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PCP will become part of the UK-headquartered asset manager’s £73bn private markets business, complementing its £19bn private credit and structured credit teams.

M&G Investments said the acquisition will broaden its client offering, benefitting from PCP’s strong relationships and an extensive origination network.

There will be no changes to PCP’s management team or investment strategies as a result of the deal.

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“Increased access to direct investments is essential for early-growth entrepreneurs to scale without losing control or incentives,” said Emmanuel Deblanc (pictured right), chief investment officer of private markets at M&G Investments.

“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 (pictured left), founder and chief executive of P Capital Partners, 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. 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.

Large investment firms are increasingly opting to acquire private credit fund managers to expand their offering in a highly attractive sector. Institutional and wealth clients alike are tapping into private credit for high yields, fixed income and diversification away from public markets.