The commitment follows LGC’s investment in Pemberton’s first, pan-European fund which has currently raised around €1billion and has already invested over £180 million into UK firms. Pemberton expects to hold a first close of the new fund before the end of 2016.
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.
LGC took a 40% stake in Pemberton in 2014 to support the growth of its mid-market lending platform, accelerating its ability to lend directly and provide a new source of institutional funding to businesses over the long term. Pemberton, which acts as an alternative to traditional bank finance, aims to play a key role in investing in and supporting dynamic businesses and the UK economy where there is a significant lending gap.
Paul Stanworth, Managing Director of Legal & General Capital, said:
“Economic growth in the UK relies upon the success of small and medium sized businesses but too often such enterprises are starved of funding. Whether companies are looking to expand, launch new products, buy another business or invest in new talent, growth can only come when there’s investment. Pemberton, which is backed by Legal & General Capital, has already been helping businesses across Europe and now with our backing in this fund are focused in particular on supporting UK enterprises.”
