Pemberton launches UK Mid-Market Direct Lending Strategy
£500m strategy will back dynamic mid-sized growth businesses
Following the success of its European Mid-Market fund, Pemberton, the independent asset management group backed by Legal & General, today announces the launch of its UK Mid-Market Direct Lending Strategy.
The new strategy, which will be denominated in sterling, aims to raise £500m and signals Pemberton’s determination to play a role investing in and supporting dynamic mid-sized businesses in the UK economy. Pemberton has built significant experience in the sourcing of UK investment opportunities for its existing European Mid-Market Debt Strategy.
Already anchored by two leading institutional investors, including Legal & General, the strategy will enable investors with long term capital to capitalise on the appetite for non-bank financing in the UK. The strategy expects to hold a first close before the end of 2016.
We see this strategy as our commitment to support the UK’s mid-market companies, who are responsible for much of the country’s growth and innovation. The UK continues to suffer from a financing gap, having seen £1.6 trillion of domestic and cross-border lending been withdrawn from the market since 2008.
As foreign lenders further reassess their commitment to UK lending following Brexit, it is clear there is a need to fill this gap. Quality UK companies are seeking funds for growth or acquisitions in what remains the most dynamic economy in Europe. This is one reason why the UK mid-market stands as one of the most compelling markets for investors.
– Symon Drake-Brockman, Managing Partner at Pemberton
With 10,000 UK mid-market companies, we are very pleased that our origination team has seen strong demand for both corporate loans and private equity sponsor loans. In the past 12 months, we have originated more than 100 opportunities alone and importantly, the UK’s decision to leave the European Union has not impacted this appetite.
Through our European Mid-Market Debt Strategy, we have already invested more than £180 million in UK mid-market companies. We are looking forward to furthering that amount with this new strategy.
– John Doyle, Head of Origination at Pemberton
