M&G, through its Catalyst strategy, has today agreed to provide up to $200 million in committed and contingent capital to Lafayette Square, a national investment platform, through a non-discretionary separately managed account. Lafayette Square’s credit team will invest the capital in growing middle market companies, with a primary focus on first lien senior secured loans.
Lafayette Square’s private credit strategy incorporates Worker Solutions, an internally developed platform that seeks to measurably improve the retention, productivity, and well-being of employees who work within the companies being financed. The platform will track and measure the impact that Lafayette Square and M&G’s partnership has on improving the lives of low- and-moderate-income workers.
The $200 million investment has been made by M&G’s Catalyst strategy, which is investing up to $5.6 billion into innovative privately-owned businesses working to create a more sustainable world.
“We are proud to support this innovative approach to financing companies across the US,” said Thierry Masson, M&G Head of Catalyst – Americas. “Through our partnership with Lafayette Square, we can provide business owners with the capital they need to grow while also helping improve the lives of workers in underserved communities.”
“We are grateful to have M&G as a key strategic investor within our credit strategy as we continue to grow our direct lending business,” said Damien Dwin, founder & CEO of Lafayette Square. “We look forward to expanding the number of middle market companies we finance during this critical juncture within the economic cycle, while also extending worker benefits that support the companies and communities in which we invest.”
About M&G Investments
M&G Investments is part of M&G plc, a savings and investment business which was formed in 2017 through the merger of Prudential plc’s UK and Europe savings and insurance operation and M&G, its wholly owned international investment manager. M&G plc listed as an independent company on the London Stock Exchange in October 2019 and has over €400 billion of assets under management (as at 30 June 2022). M&G plc has customers in the UK, Europe, the Americas and Asia, including individual savers and investors, life insurance policy holders and pension scheme members.
For nearly nine decades M&G Investments has been helping its customers to prosper by putting investments to work, which in turn creates jobs, homes and vital infrastructure in the real economy. Its investment solutions span equities, fixed income, multi asset, cash, private debt, infrastructure and real estate.
M&G recognizes the importance of responsible investing and is a signatory to the United Nations Principles for Responsible Investment (UNPRI) and is a member of the Climate Bonds Initiative Partners Programme. M&G plc has committed to achieve net zero carbon emissions on its total book of assets under management and administration by 2050 and committed to reduce operational carbon emissions as a corporate entity to net zero by 2030.
About Lafayette Square
Lafayette Square creates compelling investment opportunities in overlooked places and underserved markets. We invest across asset classes and seek to provide robust risk-adjusted returns to investors while proactively supporting the people and communities we invest in. For more information about Lafayette Square, please visit www.lafayettesquare.com.