M&G Shares Are a Buy – Goldman Sachs

In a recent note to clients, analysts at Goldman Sachs reiterated its ‘Buy’ rating on M&G (LON: MNG) following the firm’s announcement of a majority stake acquisition in private credit business P Capital Partners (PCP).

Stockholm-based PCP focuses on corporate non-sponsor lending and has raised approximately €7 billion since its inception. 

M&G will acquire a 70% stake, with PCP’s management retaining the remaining equity. The deal is expected to close in mid-2025, pending regulatory approvals.

Goldman Sachs said in the note that it views the acquisition as part of M&G’s broader strategy to expand its footprint in European private assets, a segment that continues to see strong investor demand. 

“We see this acquisition as a continuation of M&G’s strategic growth plans to strengthen its position within European private assets,” the analysts noted.

The move aligns with M&G’s ongoing efforts to diversify its investment offerings, particularly in the growing private credit market, which has become an attractive alternative to traditional lending.