M&G pledges £1bn to boost affordable housing and regeneration
The fund will focus on projects including urban regeneration, affordable homes, clean energy and infrastructure to improve health and community wellbeing.
M&G has pledged over £1bn to invest in UK innovation, infrastructure and affordable housing over the next three to five years.
The funds will go towards new homes, regeneration projects and supporting companies, with capital coming from its Life business, the British Business Bank and the Scottish Borders Council Pension Fund.
M&G currently has more than £100bn invested in the UK economy and is aiming to attract more from local government pension schemes and other investors into its new UK social investment fund.
The fund will launch with £130m from Scottish Borders Council Pension Fund and M&G’s with profits fund.
The fund will focus on projects that deliver positive social outcomes, including urban regeneration, affordable homes, clean energy and infrastructure to improve health and community wellbeing.
M&G’s private markets team will manage the fund and work with local authorities and providers to deliver purpose-built accommodation for young care leavers and extra affordable housing.
Chancellor Rachel Reeves, said: “This investment is exactly what our pensions and investment reforms are designed to unlock.
“Billions of pounds to build the homes, infrastructure and invest in innovative businesses that will power Britain’s next decade of growth.”
Andrea Rossi, CEO of M&G plc, said: “By unlocking capital from British savers and international partners, M&G is poised to build critical infrastructure, support the growth of British businesses, while laying the foundations for a more productive, sustainable economy and stronger communities across the country.”
David Parker, Chair of the Pension Fund Committee for Scottish Borders Council Pension Fund, said: “Scottish Borders Council is delighted to be partnering with M&G in their new UK Social Investment Fund.
“The Fund will provide a significant boost to the UK economy and deliver investment that will benefit communities throughout the whole of the United Kingdom.
“The pipeline of projects within the Fund will make an enormous difference to many communities and the quality of the projects that will be financed is extremely impressive.”
Parker added: “SBC have no doubt that M&G’s strong track record of delivery will make a huge difference to the whole of the UK.”
Louis Taylor, CEO of the British Business Bank, said: “We’re delighted to be backing M&G’s new fund, which will drive investment in the UK’s growth economy.
“M&G continues to be a trailblazer in boosting its investment activity in UK venture and, along with their investors, they will see the benefits of being a leader in the long term.
“There are significant untapped opportunities in the UK’s unlisted companies, and our domestic institutions should be looking to increase allocations to this asset class.”
Taylor added: “Our new platform, Venture Link, will help to pave the way for institutional investors by increasing visibility of live investment opportunities like this one.”
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