The UK Treasury has allocated Prudential Capital Group GBP200m from a total of GBP700m as part of a partnership to make more capital available to mid-sized UK businesses.
Prudential Capital Group is an investment manager focused on providing capital for middle-market, public and private companies, and an investment business of Prudential Financial.
The GBP200m was allocated to the Pricoa Sterling Fund, which, consistent with the objectives of the public/private partnership, will invest in debt securities of UK companies with less than GBP500m in annual revenue. The funds will be invested alongside the adviser’s parent and other institutional investors.
Prudential Capital Group is one of the largest middle-market private placement investors in the world with more than 70 years of experience. Globally, the firm has lending relationships with more than 1,000 companies and manages a portfolio of more than USD65bn, including USD10bn managed for non-affiliated investors, as of 30 September 2012.
HM Treasury launched the initiative, called the Business Finance Partnership, earlier this year to increase the supply of capital through non-bank lending channels and to help diversify capital sources. The UK Chancellor’s Autumn Statement, dated 5 December 2012, announced the investment of GBP700m toward the creation of five new funds that will lend to mid-sized companies.
“The Business Finance Partnership was a perfect fit for Prudential in that we have been actively executing a non-bank, institutional lending model in the UK for more than 20 years,” says Albert Trank (pictured), a managing director with Prudential Capital Group responsible for the firm’s advisory funds and investor relationships. “The initiative also raises the visibility of opportunities in non-bank lending/investing for institutional investors beyond the traditional US base. We anticipate active participation among UK institutional investors.”
