M&G is one of the longest established and most active leveraged loan market participants in Europe. We were one of the first non-bank investors to enter the European market in 1999, and currently have €9.3bn* in funds under management in European loans.
* As at 31 December 2016.
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In Europe, leveraged loans typically arise in conjunction with a private equity-sponsored ‘Leveraged Buy-Out’. They offer a high, floating rate of interest with security over a company’s assets, a priority position in the capital structure and a free prepayment option for the borrowing company. While not always publicly-rated, leveraged loans would typically have a sub-investment grade equivalent rating.
We have a long track record of investing in European leveraged loans and aim to offer investors access to this specialist, private asset class.
At M&G, we believe loans to be an attractive investment, with the potential to provide:
- High LIBOR-linked returns
- Downside protection from security and first-ranking position
- Generally more stable than public market
M&G was one of the first investors in leveraged loans and is one of the largest loan managers in the European market. We first started investing on behalf of our parent company, Prudential, in 1999, and now manage pooled and segregated funds for institutional investors across the UK, Europe and Asia.
Source: M&G as at 31 December 2016. M&G figures are shown on a nominal basis plus committed capital.
All figures cited in the chart above are correct as at the end of the year that they represent.