M&G Launches £74m Private Credit LTAFThe fund targets workplace pensions; retail access is a separate question

M&G launched the M&G Diversified Private Credit Feeder Long-Term Asset Fund (LTAF) on 12 October 2026 with £74 million of initial commitments, including capital from its £138 billion With-Profits Fund (Professional Pensions, Money Marketing).

The fund is aimed at UK defined contribution (DC) pension schemes and other professional investors that want exposure to private credit: lending to businesses and financing for infrastructure, real estate and other assets that are harder to reach through listed bond markets (IPE). It targets net returns of 5 percentage points a year above SONIA, the Sterling Overnight Index Average, after fees and costs, over a five-year investment horizon (Money Marketing). That is a target, not a guaranteed return.

The fund sits within M&G's £28 billion private and structured credit platform, part of its £83 billion private markets business, and extends to DC schemes a capability M&G says it has run for defined benefit pensions and institutional investors for more than 25 years.

A Long-Term Asset Fund is a UK-authorised fund structure for assets that can take time to sell, such as private equity, private credit, infrastructure and property. Unlike a daily-dealing fund of listed shares and bonds, an LTAF limits withdrawals to match the liquidity of what it holds: the FCA's rules (COLL 15) require a redemption notice period of at least 90 days. Our complete list of UK LTAFs explains the structure in more detail.

The launch follows the Mansion House Accord, under which major workplace pension providers set an ambition to put at least 10% of their DC default funds into private markets by 2030, including at least 5% directly into UK private markets (IPE).

For pension savers the effect is indirect: a scheme may put part of its default fund into private assets without members choosing a private-market fund themselves. Growth in pension allocations does not by itself increase the number of private-market funds individuals can buy directly.

Not necessarily. The launch coverage describes the fund as aimed at DC pension schemes and other professional investors, and does not mention availability through retail investment platforms.

LTAFs became eligible for Stocks and Shares ISAs and Junior ISAs on 6 April 2026 (see LTAFs in your ISA: what's changed). Eligibility in law is not the same as availability: access also depends on the fund's share classes, distribution arrangements and financial-promotion rules. By mid-2026, only two LTAFs, both Schroders feeder funds, could be held in an ISA, through a single platform. Anyone interested in the M&G fund should check whether an authorised platform or adviser offers it before treating it as an option.

Look past the return target to the risks underneath it:

• •Credit risk. Borrowers can default and recoveries can be lower than expected. Private loans can also be hard to value and to sell.
• •Liquidity. Notice periods, dealing limits and possible suspensions affect when you get your money back.
• •Fees. A feeder fund has costs at two levels: the feeder itself and the underlying fund. Check the total and how the net-return target is calculated.

Our July 2026 count found 29 LTAFs authorised on the FCA's Financial Services Register; DC pension schemes remain their main audience, and only three were explicitly structured for wealth and retail channels. That is why a headline count of authorised funds says little about what individuals can actually buy. The more useful questions are which funds are open to you, what they invest in, how their liquidity terms work and what they cost; our fund-by-fund list covers each one.