M&G reported a small upswing in its non-public belongings enterprise final 12 months and unveiled plans to allocate extra to what it calls a “key part” of its institutional funding technique.
Personal belongings below administration (AUM) elevated to £74.1bn within the 12 months to 31 December 2024, up from £73.4bn in 2023. Of this whole, £20bn is non-public and structured credit score.
M&G’s non-public belongings enterprise consists of personal fastened earnings, options, actual property and infrastructure fairness choices.
It’s a “key part of our institutional funding functionality, and represents a resilient, high-margin supply of revenues,” M&G mentioned in its full-year report.
The monetary providers group expects its life insurance coverage arm to allocate €500mn (£420mn) to non-public belongings in future, into its Company Credit score and Progress funds, based on a presentation accompanying the outcomes.
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The non-public markets facet of M&G has been strengthened lately by its buy final month of a 70 per cent stake in Stockholm-based non-public credit score agency P Capital Companions (PCP), in addition to taking a majority stake (65 per cent) in actual property firm BauMont on the finish of final 12 months.
PCP has greater than €3.8bn (£3.2bn) in belongings below administration throughout three non-public credit score methods, with a selected give attention to non-sponsored company direct lending.
In the meantime, M&G reported total belongings below administration rose to £345.9bn in 2024, up from £343.5bn a 12 months earlier.
Pre-tax earnings have been additionally up, growing 5 per cent in the course of the 12 months to £837mn, following a cost-cutting drive.
“Over the past 12 months, now we have delivered strategic and operational momentum with significant progress throughout our three priorities: monetary energy, simplification, and development,” mentioned Andrea Rossi, M&G group chief govt. “That is mirrored in our robust monetary efficiency.
“We at the moment are transferring into a brand new part for the group, the place we are going to ship sustainable and diversified development throughout asset administration and life.”
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According to this ambition, he introduced two new targets for 2025-2027: to develop adjusted pre-tax working earnings by 5 per cent or extra per 12 months, and to generate £2.7bn of working capital.
Rossi additionally introduced a two per cent improve for the 2024 dividend per share.