M&G opens private credit to UK pension savers with £74m LTAF
What's the deal? M&G has launched the M&G Diversified Private Credit Feeder long-term asset fund (LTAF) with £74 million in initial commitments. The fund targets UK defined contribution (DC) pension schemes seeking more exposure to private markets, and will channel capital into businesses and projects across the UK and Europe.
Where's the money from? The initial £74 million includes capital from M&G's £138 billion with-profits fund. The vehicle sits within the firm's £28 billion private and structured credit platform, part of its wider £83 billion private markets business.
What's the endgame? The LTAF gives investors access to a range of private credit, including corporate lending and the financing of infrastructure, real estate, and other assets. It extends to DC schemes a capability M&G has run for defined benefit pensions and institutional investors for more than 25 years.
"M&G's Diversified Private Credit Feeder LTAF is designed to support savers throughout their investment journey, helping to grow savings during their working lives while providing a reliable source of income in retirement," said Neil Godfrey, global head of client group at M&G InvestmentsDealroom has a profile for this one. Try Dealroom →.
Why now? The launch follows the Mansion House Accord, under which pension providers committed to raising allocations to private markets. It also comes after M&G's Corporate Credit Opportunities European long-term investment fund (ELTIF), which holds more than €1 billion in assets.
What could go wrong? LTAFs have broadened access to private markets for UK DC schemes in recent years, but uptake remains thin. Morningstar data published in 2025 put collective assets under management across approved LTAFs at just £5 million.
The signal: Big asset managers are racing to package private credit for DC savers, with BlackRock and Morgan Stanley among those building similar products. M&G's entry signals growing conviction that pension reform will finally move retail retirement money into private markets at scale.
Read more: alternativecreditinvestor.com
