To implement the new mandate, M&G has created a new global investment team called Catalyst, with offices in London, Singapore, New York, and Mumbai. The 25-strong team has the flexibility to invest in private credit, real estate, financial assets, and private equity, allowing it to tailor capital deployment according to investment opportunity and provide ongoing support as it develops.
Read more about M&G investment in sustainability and read other important business news with the Born2Invest mobile app.
Positive social or ecological purpose in focus
Investment vehicles in the pipeline include SME finance and consumer finance (e.g., microfinance and trade receivables), asset and development finance (e.g., for affordable housing and energy from waste facilities), and investments in technologies with a positive social or environmental purpose.
John Foley, Chief Executive of M&G, said: “More and more clients are asking us to make a positive impact on the world through sustainable investing, while seeking good returns to secure their retirement.”
Private assets are strongly suited to the form of investments
“For this purpose, private assets are among the most attractive investment options – new and existing companies and platforms that are not publicly traded. As an anchor investor in such companies, M&G can have a much greater impact on their growth and sustainability than we can in public markets,” Foley notes.
Catalyst aims to invest in unlisted companies
Catalyst will be located within M&G’s Private & Alternative Assets division. With more than two decades of experience in private assets, M&G already manages more than $90 billion (£65.5 billion) in private credit, private equity and real estate for Prudential policyholders and external clients.
Drawing on this expertise and track record in private assets, the Catalyst team will seek global opportunities to invest in unlisted companies that would otherwise struggle to access growth and development capital.
Catalyst will have a broad, flexible impact focus
This ranges from ESG risk management to positive impact for vulnerable groups. The team will use the Impact Management Project’s (IMP) investment classification framework for sustainable investing to evaluate potential opportunities in three categories: 1. ESG Compatible – companies or assets that avoid harm; 2. Sustainable – companies that benefit stakeholders by delivering positive outcomes for people and the planet; and 3. Impact – companies that contribute to solving societal and environmental problems.
Positive screening via the M&G ESG Scorecard
Screening to ensure companies act in accordance with the principle of avoiding harm is based on criteria already established for all of M&G’s ESG funds, which exclude lines such as gambling, tobacco and controversial weapons. Positive screening is done via M&G’s proprietary ESG scorecard, which builds on international SASB standards and the “III” framework for impact investing.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in INSTITUTIONAL Money.com, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
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