Key Takeaways
- • M&G has launched the M&G Diversified Private Credit Feeder long-term asset fund (LTAF) with £74 million in initial commitments, targeting UK defined contribution (DC) pension schemes.
- • The initial capital includes money from M&G's £138 billion with-profits fund, and the vehicle sits within the firm's £28 billion private and structured credit platform.
- • The LTAF will invest across corporate lending and financing of infrastructure, real estate and other assets in the UK and Europe, extending a capability M&G has run for defined benefit pensions and institutional investors for more than 25 years.
- • The launch follows the Mansion House Accord, under which pension providers committed to raising private markets allocations, and comes after M&G's €1 billion-plus Corporate Credit Opportunities ELTIF.
- • Uptake of LTAFs remains thin: Morningstar data published in 2025 put collective AUM across approved LTAFs at just £5 million.
Summary
M&G has launched the M&G Diversified Private Credit Feeder long-term asset fund (LTAF) with £74 million in initial commitments, according to the firm's announcement as reported by Dealroom. The fund is aimed at UK defined contribution (DC) pension schemes seeking greater exposure to private markets, and will channel capital into businesses and projects across the UK and Europe.
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, which is part of its wider £83 billion private markets business.
The LTAF offers access to a range of private credit strategies, including corporate lending and the financing of infrastructure, real estate and other assets. M&G says it is extending to DC schemes a capability it has run for defined benefit pensions and institutional investors for more than 25 years. Neil Godfrey, global head of client group at M&G Investments, said the fund is designed to support savers throughout their investment journey, helping to grow savings during working lives while providing a reliable source of income in retirement.
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.
Uptake of LTAFs remains limited. Morningstar data published in 2025 put collective assets under management across approved LTAFs at just £5 million. Competitors including BlackRock and Morgan Stanley are also building similar products for DC savers, suggesting a broader push by asset managers to package private credit for retirement savings.
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, which is part of its wider £83 billion private markets business.
The LTAF offers access to a range of private credit strategies, including corporate lending and the financing of infrastructure, real estate and other assets. M&G says it is extending to DC schemes a capability it has run for defined benefit pensions and institutional investors for more than 25 years. Neil Godfrey, global head of client group at M&G Investments, said the fund is designed to support savers throughout their investment journey, helping to grow savings during working lives while providing a reliable source of income in retirement.
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.
Uptake of LTAFs remains limited. Morningstar data published in 2025 put collective assets under management across approved LTAFs at just £5 million. Competitors including BlackRock and Morgan Stanley are also building similar products for DC savers, suggesting a broader push by asset managers to package private credit for retirement savings.
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