In brief: M&G’s impact fund Catalyst backs IP-backed lender

The $300m investment has the potential to drive positive impact 'in some cases' by providing loans to IP-backed businesses.

M&G’s $300 million investment in a strategy to finance IP-backed businesses has “in some cases, the potential to help drive a positive impact for society”, according to an announcement from the firm.

The vehicle is managed by Aon Advantage Funds and seeks to help early-stage companies to raise capital by issuing loans secured against their intellectual property.

The investment has been made as part of M&G’s Catalyst strategy, which invests “in innovative, privately owned global businesses working to create a more sustainable world”. It has previously committed to Northern Gritstone, a venture capital firm committed to tackling England’s regional wealth and employment inequalities.

M&G did not expand on how the loans are intended to drive impact and did not respond to NPM’s requests for further information.

“Working with M&G allows us to help create a more sustainable world by providing non-dilutive capital to innovative companies,” said Matthew Farrar, managing partner and head of Aon Advantage Funds, in the press release.