Pollen Street predicts rise in private credit fee-paying AUM after flat 2024
Pollen Street expects fee-paying assets under management (AuM) for its private credit business to increase this year after a flat 2024, once newly-raised funds for its latest vehicle are deployed.
The alternative asset manager – which invests in both private equity and private credit – reported that private credit fee-paying AuM remained at £1.4bn last year, the same value recorded in 2023.
Total private credit AuM, which includes undeployed funds, rose to £1.9bn last year.
“We expect fee-paying AuM for the private credit strategy to increase going forward as the newly raised funds in Private Credit Fund IV are deployed and convert into fee-paying AuM,” Pollen Street said in its latest annual results.
The asset manager said that fundraising for Private Credit Fund IV has “strong momentum” and it is on track to raise the target £1bn in total commitments during 2025, with £0.1bn closed in early 2025.
“Deployment of the new funds was active with 15 new deals and £238m commitments invested; the business has a large pipeline of attractive new deals to continue this deployment into 2025,” it said.
Pollen Street’s overall AuM rose by 29 per cent last year to reach £5.4bn, boosted by growth in its private equity business.
Pre-tax profit rose by 31 per cent to £55.8m in the 12 months to 31 December 2024.
Pollen Street said that it is confident of meeting its medium-term total AuM goal of £10bn.
“We are proud of the continued progress that Pollen Street has achieved in the last year,” said Lindsey McMurray, chief executive of Pollen Street.
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“Our AuM increased in both private equity and private credit, reflecting our investors’ confidence in our strategies.
“Private Equity Fund V surpassed its €1bn (£0.84bn) target and the private credit strategy and team are increasingly recognised as a clear leader in their field.
“2025 has started well with continued fundraising momentum, solid asset performance and a promising pipeline of deployment opportunities. Looking ahead, we are strategically positioned to capture future growth with our specialist focus, diversified investor base and long track record of performance setting us apart.”
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