M&G launches £74m private credit LTAF seeded in part by with-profits fund

M&G Investments has launched a private credit long-term asset fund with £74 million of initial commitments, aimed at UK defined contribution pension schemes, Alternative Credit Investor reported. The vehicle is M&G's Diversified Private Credit Feeder LTAF, according to Neil Godfrey, the firm's global head of client group.

The initial £74 million includes capital from M&G's £138 billion with-profits fund, according to the report. The LTAF is intended to give investors access to corporate lending and the financing of infrastructure, real estate and other assets. It sits inside M&G's £28 billion private and structured credit platform, part of an £83 billion private markets business.

Godfrey said M&G has delivered private credit to defined benefit pension schemes and other institutional investors for more than 25 years. He said the feeder fund is designed to support savers through their working lives while providing retirement income. The launch follows M&G's Corporate Credit Opportunities European long-term investment fund, an ELTIF with more than €1 billion in assets.

The LTAF wrapper has widened UK DC schemes' access to private markets in recent years, though allocations have stayed low. Morningstar data published in 2025 put approved LTAFs' collective assets at £5 million, according to the report, a total far below M&G's single initial raise. M&G's fund targets schemes looking to raise private markets exposure after the Mansion House Accord, the report said.

Ontario Teachers' Pension Plan agreed in July to commit up to €200 million to help scale M&G's European CLO business, PCD reported.