HM Treasury allocates £200m to Pru for UK middle market investments

The investment management unit of international financial services group Prudential Financial (NYSE: PRU), Prudential Capital Group, said that UK economics and finance ministry Her Majesty’s Treasury has allocated GBP 200m (about USD 323m) of a total GBP 700m (about USD 1.1bn) to the firm as part of a partnership to make more capital available to mid-sized UK businesses.

According to Pru , the GBP 200m was allocated to the Pricoa Sterling Fund, which, consistent with the objectives of the public/private partnership, will invest in debt securities of UK companies with less than GPB500m in annual revenue.

The funds will be invested alongside the advisor’s parent and other institutional investors.

Prudential Capital Group said it has lending relationships with more than 1,000 companies and manages a portfolio of more than USD 65bn globally, including USD 10bn managed for non-affiliated investors, as of September 30, 2012.

HM Treasury launched the initiative, called the Business Finance Partnership, earlier this year to increase the supply of capital through non-bank lending channels and to help diversify capital sources.

The UK chancellor’s Autumn Statement announced the investment of GBP 700m toward the creation of five new funds that will lend to mid-sized companies.

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