Prime Highlights:
- M&G plans to invest over £1 billion in the UK over the next three to five years, focusing on affordable housing, urban renewal, infrastructure, and innovative businesses.
- The Catalyst Growth Equity Fund has raised more than $850 million to support UK and international companies that deliver profits alongside social and environmental benefits.
Key Facts:
- The UK Social Investment Fund will launch with £130 million and will support projects such as affordable housing, urban regeneration, clean energy, and housing for young care leavers.
- M&G already manages over £100 billion in UK investments and is working with partners including the British Business Bank and the Local Government Pension Scheme.
Background:
International investment firm M&G plans to invest more than £1 billion in the UK over the next three to five years. The investment will support affordable housing, regeneration of cities, major infrastructure projects, and growing innovative businesses.
The funding will be channelled through two newly created funds, backed by M&G’s Life business, the British Business Bank, and the Local Government Pension Scheme, including the Scottish Borders Council Pension Fund. M&G is also inviting participation from other pension funds, charities, and global investors.
M&G already oversees more than £100 billion in UK assets and has launched the UK Social Investment Fund with an initial £130 million. This fund will support projects that deliver social value, such as low-cost housing, urban development, clean energy, essential infrastructure, and accommodation for young people leaving care.
At the same time, M&G announced that its Catalyst Growth Equity Fund has raised over $850 million in commitments. This includes support from M&G’s With Profits Fund and a $100 million contribution from the British Business Bank. The Catalyst Fund focuses on backing early-stage and innovative companies in the UK and internationally.
The Chancellor described the move as a strong example of how pension and investment reforms can stimulate economic growth, create homes, strengthen infrastructure, and support innovation across the country.
M&G’s leadership highlighted the company’s long-term commitment to the UK, stating that the goal is to mobilise capital from UK savers and international partners to strengthen infrastructure, support business expansion, and build a more sustainable economy and resilient communities.
Through these investments, M&G aims to boost economic growth while giving investors clear social and environmental returns.