Leveraged finance

In Europe, leveraged loans typically arise in conjunction with a private equity-sponsored ‘Leveraged Buy-Out’. They have the potential to 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. 

At M&G, we have a long track record of investing in European leveraged loans and aim to offer investors access to this specialist, private asset class.

Where past performance is referenced, please note that this is not a guide to future performance.

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 markets

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 30 June 2017. 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.

M&G European Loan Fund – our pooled fund with total assets of €3.9bn* 

Segregated loan mandates – currently 12 funds with total assets of €4.5bn* 

* As at 31 December 2017.

Past performance is not a guide to future performance.

Disclaimer
This page does not constitute an offer or solicitation. The value of investments can fall as well as rise. There is no guarantee that these investment strategies will work under all market conditions or are suitable for all investors and you should ensure you understand the risk profile of the products or services you plan to purchase.

M&G does not offer investment advice or make recommendations regarding investments. Opinions are subject to change without notice. Reference in this document to individual companies is included solely for the purpose of illustration and should not be construed as a recommendation to buy or sell the same.

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