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Audience

Leveraged finance

Leveraged loans have the potential to provide attractive levels of return with typically lower volatility than public markets.

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For further information about our leveraged finance investment opportunities.

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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 €9.0bn* in funds under management in European loans. 

* As at 30 June 2018.

The value of investments will fluctuate, which will cause prices to fall as well as rise and investors may not get back the original amount they invested.

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

What are European leveraged loans?

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.

Why invest in leveraged loans?

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

Our history of investing in leveraged loans

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.

Leveraged-Finance_Bar-GraphSource: 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.

Our product range

M&G European Loan Fund – our pooled fund with total assets of €3.7bn* 

Segregated loan mandates – currently 12 funds with total assets of €5.3bn* 

* As at 30 June 2018.

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.

Notice to Investors in the European Economic Area
In relation to each member state of the EEA (each a “Member State”) which has implemented Alternative Investment Fund Managers Directive (Directive (2011/61/EU)) (the “AIFMD”) (and for which transitional arrangements are not/ no longer available), this document may only be distributed and units may only be offered or placed in a Member State to the extent that: (1) the Fund is permitted to be marketed to professional investors in the relevant Member State in accordance with AIFMD (as implemented into the local law/regulation of the relevant Member State); or (2) this document may otherwise be lawfully distributed and the units may otherwise be lawfully offered or placed in that Member State (including at the initiative of the investor). In relation to each Member State of the EEA which, at the date of this document, has not implemented AIFMD, this document may only be distributed and units may only be offered or placed to the extent that this document may be lawfully distributed and the units may lawfully be offered or placed in that Member State (including at the initiative of the investor).


Meet the leveraged finance investment team

Catherine Ross-89 x 102 
Co-Head of Leveraged Finance
Catherine Ross
fiona-hagdrup-89 x  102 
Fund Manager
Fiona Hagdrup
Andrew Boughen-89 x 102 
Fund Manager
Andrew Boughen
hannah-edwards 
Client Support
Hannah Edwards
catherine-peters 
Associate Director
Catherine Peters
Tom Lane-89 x 102 
Associate Director
Thomas Lane
Cameron Low-89 x 102 
Secondary Trader
Cameron Low
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For institutional investors only. Not for onward distribution to any other type of client. No other persons should rely on the information contained on this website.