Budget 2012: M&G in running to manage business finance fund

M&G Investment Management is one of seven fund managers that have been shortlisted to manage £700m pot of money to help businesses access non-bank finance.

M&G joins Alcentra, Ares Management, Cairn Capital, Haymarket Financial, Palio Capital and Pricoa Capital to manage the Business Finance Partnership.

An initial investment of up to £700m will be made by the government, with the total fund to reach £1.2 billion.

In the government’s Budget, it announced £100m would be made through non-traditional lending channels to reach smaller businesses which could include peer-to-peer or supply chain financing.