M&G Investments plc, through its Catalyst private assets strategy, committed $300 million in capital to a new vehicle managed by Aon that is focused on intellectual property lending.
Aon Advantage Funds, LLC, launched a new investment vehicle that will provide innovative growth companies, primarily in North America, with new ways to access capital based on the value of their intellectual property.
Aon has supported more than $1 billion to date in financing in this unique IP-backed lending space. The services are offered by Chicago-based Aon’s IP Solutions group and the lending strategies offered by Aon Advantage Funds.
“Aon Advantage Funds can help organizations protect and grow their business by matching capital with companies that have transformative technologies, enabling better capital decisions for emerging companies,” said Matthew Farrar, managing partner and head of Aon Advantage Funds. “Working with M&G allows us to help create a more sustainable world by providing minimally or non-dilutive capital to innovative companies.”
M&G Investments is part of M&G plc, a savings and investment business which formed in 2017 through the merger of Prudential plc’s UK and Europe savings and insurance operation and M&G, its wholly owned international investment manager. M&G has over $425 billion of assets under management, and its Catalyst global strategy has invested up to $5.6 billion into privately owned businesses working to create a more sustainable world. Catalyst’s investment and strategic collaboration with Aon will help develop the firm’s IP-backed investing strategy.
“We are looking forward to helping innovative technology businesses accelerate their development,” said Thierry Masson, M&G head of Catalyst – Americas. “With Aon’s IP Solutions, which help us understand the value of a business’ intellectual property, and Aon’s insurance brokerage service, we can offer financing solutions as innovative and unique as the technology companies benefiting from this capital.”
M&G is seeking to pursue insured first lien IP-backed loans with equity-backed, innovation-led organizations, prioritizing opportunities with potential to help drive a positive impact for society through the application of their IP.
According to Aon, it’s strategy is built on an IP platform of almost 150 million global patents mapped to more than 7,000 markets. As of 2022, Aon’s IIP Advantage Funds had access to more than $550 million in available capital.