M&G Investments has invested £92m (€107m) into its €1.3bn (£1.1bn) European fund, which provides access to finance for microfinance lenders and financial institutions in developing countries in the South East and East Europe.
The fund promotes entrepreneurship, job creation and poverty reduction in these areas, and also invests in financial infrastructure, providing local businesses with financial products, technical assistance and access to finance for communities.
The £92m investment is anchored by M&G’s purpose-led private assets strategy, Catalyst, the Prudential With-Profits Fund – which has £129bn assets under management as of 31 December 2023 – and external funds managed by M&G’s Private Credit team.
This is M&G’s second investment into an impact-driven public private partnership (PPP) model following a $90m (£72m) investment into the Microfinance Enhancement Facility. This provides funding to more than 120 financial institutions in 44 countries globally.
Eoin O’Shaughnessy, co-head of structured credit research at M&G Investments, said: “Partnering with EFSE enables us to channel impactful capital towards empowering households and micro-SMEs in the region.
“Our investment isn’t just about seeking financial returns; it’s about helping to make a tangible difference in people’s lives. By leveraging our expertise in PPP models, we’re able to amplify the flow of private capital to institutions that share our vision of fostering inclusive and sustainable economic growth. This investment isn’t just a financial decision; it’s a commitment to creating positive change on the ground.”
