PPM Capital’s independence comes a year late

PPM Capital’s spinout from Prudential will take place next quarter, after having been delayed for a year beyond market expectations.

PPM Capital, the buyout arm of UK financial services company Prudential, is set to spin out from the company at the end of the fourth quarter according to Neil MacDougall, managing director of PPM Capital.

He said in a statement: “We are

Neil
MacDougall

continuing our discussions with M&G and are on track to announce a successful completion by the end of the year. We are also very pleased with our fundraising efforts which are progressing well and we look forward to announcing our first closing before the end of the year.”

PPM Capital is raising a €1 billion fund, which will hold a first close at the same time as the firm spins out from the company, a source said.

He said he could not confirm the level of the first close: “Discussions are continuing on track and on plan. It is an industry standard to hold a first close, normally beneath the level of the final close.” Prudential M&G is expected to take a €250 million stake in the fund, while Scottish bank HBoS is also an investor, according to UK daily newspaper The Times, which reported a planned first close of €500 million.

PPM Capital has also had a relatively subdued investment year in comparison to some of its peers. It has only announced two buyouts so far, the acquisition of German temping agency SIR Industrieservice in June and of Slovenian dentistry group Prodent International in January for undisclosed sums.