M&G has unveiled plans to invest more than £1bn into the UK economy over the next three to five years to support the delivery of new affordable homes, regeneration projects and infrastructure.
Through the launch of two funds, M&G will channel capital from its Life business, the British Business Bank and Local Government Pension Scheme (LGPS), Scottish Borders Council Pension Fund.
M&G intends to attract further investment from LGPS and international investors into the forthcoming M&G UK Social Investment Fund, alongside other long-term investors including DC pension schemes, endowments and charitable foundations.
The fund, which is set to launch with a £130m commitment from Scottish Borders Council Pension Fund and M&G’s multi-billion With Profits Fund, will focus on delivering positive social outcomes through urban regeneration, affordable homes, clean energy and essential infrastructure that improve health and community wellbeing.
Managed by M&G’s £78.5bn private markets business, it will enable large-scale investment into bespoke projects to drive meaningful change. Early pipeline opportunities include partnering with local authorities and registered providers to deliver purpose-built accommodation for young care leavers and additional affordable housing.
M&G has also announced that its M&G Catalyst Growth Equity Fund (Catalyst) has secured commitments of more than $850m, including capital from M&G’s With Profits Fund and $100m from the British Business Bank, alongside other institutional investors.
Andrea Rossi, chief executive of M&G, said: “By unlocking capital from British savers and international partners, M&G is poised to build critical infrastructure, support the growth of British businesses, while laying the foundations for a more productive, sustainable economy and stronger communities across the country.”
David Parker, chair of the pension fund committee for Scottish Borders Council Pension Fund, added: “Scottish Borders Council is delighted to be partnering with M&G in their new UK Social Investment Fund. The fund will provide a significant boost to the UK economy and deliver investment that will benefit communities throughout the whole of the United Kingdom. The pipeline of projects within the fund will make an enormous difference to many communities and the quality of the projects that will be financed is extremely impressive. SBC have no doubt that M&G’s strong track record of delivery will make a huge difference to the whole of the UK.”
Louis Taylor, chief executive of the British Business Bank, said: “We’re delighted to be backing M&G’s new fund, which will drive investment in the UK’s growth economy. M&G continues to be a trailblazer in boosting its investment activity in UK venture and, along with their investors, they will see the benefits of being a leader in the long term.
“There are significant untapped opportunities in the UK’s unlisted companies, and our domestic institutions should be looking to increase allocations to this asset class. Our new platform, Venture Link, will help to pave the way for institutional investors by increasing visibility of live investment opportunities like this one.”
