L&G-backed Pemberton closes 1.2bn EUR inaugural fund, affirming Legal & General Capital's SME finance strategy
Legal & General Capital (LGC), the principal investment arm of Legal & General Group, announces that Pemberton which is 40% owned by LGC has completed the final close of its inaugural European Mid-Market Debt Fund (the Fund) with €1.2 billion of commitments.
Paul Stanworth, Managing Director of Legal & General Capital (photo), said: “Reaching well over €1 billion of commitments from institutions across the globe is a fantastic achievement by the Pemberton team. With such significant amounts of capital raised and more to come through the dedicated UK fund, Pemberton is building with Legal & General Capital’s support a substantial platform from which to boost lending to businesses, domestically and across Europe, supporting economic and social growth.”
The Fund attracted a diverse global investor base, including 27 investors from Europe, the USA and Asia, comprising insurance companies, pension funds, family offices and foundations. Responding to the continued retrenchment by traditional bank lenders, Pemberton is an independent asset management group, which provides much-needed finance to small and medium sized enterprises.
The Fund provides senior debt financing to borrowers in the UK and Europe, focusing on companies with a turnover between €75 million and €1 billion. 46% of the Fund’s capital is already deployed in 13 companies across the UK, France, Germany, Italy and Spain, including seven loans in the UK across the healthcare, telephony, industrials and hospitality & leisure sectors.
The Fund closing follows the recent launch of a second fund by Pemberton which plans to lend £500 million specifically to UK businesses to support their growth. LGC’s commitment to Pemberton aligns with its strategy to invest in socially and economically useful enterprises with a focus on housing, infrastructure and SME finance. Acting as a catalyst for business growth, LGC targets achieving attractive risk-adjusted returns on its investments whilst creating longer-term investment opportunities for other parts of Legal & General Group and institutional investors.
For more information please contact:
Head of Communications, Legal & General Capital and LGIM Real Assets
Tel: 020 3124 2777
Notes to editors:
Legal & General Capital
Legal & General Capital (LGC) focuses on direct investments in key sectors, particularly housing, infrastructure and SME finance. These reflect our aim to invest for the long term in economically and socially useful assets, to secure competitive returns and to create new asset classes for Legal & General’s varied investment requirements, for our partners and for the wider marketplace. We work closely alongside other businesses within Legal & General to ensure the broadest range of skillsets are deployed on any project and to utilise principal investment and asset management synergies across the Group. Investments to date have included housebuilder CALA Homes, a Build to Rent joint venture, urban regeneration projects at MediaCity/Salford and Bracknell, SME finance group Pemberton and clean energy firm, NTR.
Pemberton Asset Management
Pemberton Asset Management Holdings Limited (“Pemberton”) is an independent alternative asset management group providing finance to the European mid-market sector. Pemberton uniquely blends asset management and banking expertise and offers mid-market companies in the UK and Europe an alternative to bank finance. With banks increasingly retreating from new corporate lending, access to financing for thousands of Europe’s mid-market companies has become severely restricted. LGC become a strategic investor in Pemberton Asset Management Holdings Limited (“Pemberton”) in 2014 when it bought a 40% equity stake in the business and made a commitment to invest €250 million in the European Mid-Market Debt Fund.