A leading international savings and investment firm, M&G plc, today launched two dedicated funds to channel institutional capital into critical areas of the UK economy. The M&G UK Social Investment Fund will focus on affordable homes, regeneration projects and infrastructure in underserved areas, starting with a 130 million commitment from the Scottish Borders Council Pension Fund and M&Gs With Profits Fund. M&G aims to draw in additional capital from local government pension schemes (LGPS), defined contribution pensions, endowments and charities, building on its existing 100 billion invested in the UK.

Catalyst Fund Targets Innovation

Complementing this, the M&G Catalyst Growth Equity Fund has secured over $850 million, including $100 million from the British Business Bank and contributions from M&Gs With Profits Fund. This fund invests in innovative private companiesoften university spinoutsin sectors like technology, healthcare and sustainability, promising both financial returns and social-environmental impact.

Government and Industry Backing

Chancellor Rachel Reeves praised the move, stating: This investment is exactly what our pensions and investment reforms are designed to unlock. Billions of pounds to build the homes, infrastructure and invest in innovative businesses that will power Britains next decade of growth.

M&G Chief Executive Andrea Rossi added: By unlocking capital from British savers and international partners, M&G is poised to build critical infrastructure, support the growth of British businesses, while laying the foundations for a more productive, sustainable economy and stronger communities.

British Business Bank CEO Louis Taylor highlighted untapped opportunities in UK unlisted companies, noting M&Gs leadership in venture investment via its new Venture Link platform.

Addressing Social Needs

Independent research by OCSI identifies 225 areas in England facing shortages in healthcare, community and greenspace infrastructure, underscoring the scale of need. M&Gs funds will evaluate opportunities UK-wide, prioritising high-impact social and economic benefits.

With 364.9 billion in assets under management as of September 2025, M&Gserving 4.5 million retail and 900 institutional clientsleverages its 170-year heritage to blend asset management and insurance expertise.