Aon Advantage Funds Launches New Investment Vehicle to Help Unlock Intellectual Property-Backed Lending

Rhea-AI Summary

Aon plc (NYSE: AON) has launched a new investment vehicle under Aon Advantage Funds to support innovative growth companies in North America, focusing on capital access through intellectual property (IP) valuation. M&G Investments has committed $300 million in capital to this initiative, enhancing Aon's leadership in the IP-backed lending sector. Aon has facilitated over $1 billion in financing through its IP Solutions group. The fund’s aim includes providing minimally or non-dilutive capital to businesses with transformative technologies, promoting societal impact through IP application.

Positive

• M&G's $300 million commitment enhances Aon's funding capabilities.
• Aon Advantage Funds has facilitated over $1 billion in financing, establishing a strong market position.
• The fund targets innovation-led organizations, fostering growth in the IP-backed lending sector.

Negative

• None.

M&G commits $300 million to Aon Advantage Funds' strategy

CHICAGO, March 1, 2023 /PRNewswire/ -- Aon plc (NYSE: AON), a leading global professional services firm, today announced that Aon Advantage Funds LLC, an affiliated registered investment adviser of Aon, has launched a new investment vehicle that seeks to provide innovative growth companies, primarily in North America, with new ways to access capital based on the value of their intellectual property (IP). M&G Investments, a global asset manager through its Catalyst private assets strategy, has committed $300 million in capital to the new vehicle.

Aon has established itself as a leader in the IP-backed lending space. To date, Aon has supported more than $1 billion of financing in the market, through the services offered by its 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, LLC. "Working with M&G allows us to help create a more sustainable world by providing minimally or non-dilutive capital to innovative companies."

Catalyst is M&G's global strategy focused on innovation for impact, investing 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.

Through its commitment to Aon Advantage Funds, M&G is seeking to unlock the value of Aon's proprietary capabilities as leaders in the IP space. The mission of the fund is to pursue insured first lien IP-backed loans with equity-backed, innovation-led organizations, prioritizing opportunities with strong potential to help drive a positive impact for society through the application of their IP.

"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."

Aon Advantage Funds' IP-backed lending strategy helps companies enhance the value of their IP portfolios, harnessing the power of an IP platform of almost 150 million global patents mapped to more than 7,000 markets. Aon Advantage Funds leverages the firm's deep knowledge and patented machine-learning technology to provide minimally or non-dilutive growth capital at scale to eligible IP-rich businesses. In 2022, Aon's IP Advantage Funds had access to more than $550 million in available capital.

In 2022, Aon was named one of Fast Company's Most Innovative Companies for its ground-breaking IP solutions. For more information about Aon's IP Solutions, please visit https://www.aon.com/intellectual-property/index.jsp.

About Aon
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Our colleagues provide our clients in over 120 countries and sovereignties with advice and solutions that give them the clarity and confidence to make better decisions to protect and grow their business. 

Follow Aon on LinkedIn, Twitter, Facebook and Instagram. Stay up-to-date by visiting the Aon Newsroom and sign up for News Alerts here.

About M&G Investments
M&G Investments is part of M&G plc, a savings and investment business which was 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 plc listed as an independent company on the London Stock Exchange in October 2019 and has over €400 billion of assets under management (as at 30 June 2022). M&G plc has customers in the UK, Europe, the Americas and Asia, including individual savers and investors, life insurance policy holders and pension scheme members.

For nearly nine decades M&G Investments has been helping its customers to prosper by putting investments to work, which in turn creates jobs, homes and vital infrastructure in the real economy. Its investment solutions span equities, fixed income, multi asset, cash, private debt, infrastructure and real estate.

M&G recognizes the importance of responsible investing and is a signatory to the United Nations Principles for Responsible Investment (UNPRI) and is a member of the Climate Bonds Initiative Partners Programme. M&G plc has committed to achieve net zero carbon emissions on its total book of assets under management and administration by 2050 and committed to reduce operational carbon emissions as a corporate entity to net zero by 2030.

Media Contacts
Aon
Michael V. Marinello
+1 917 683 8610
michael.marinello@aon.com 

M&G
Irene Chambers
+44 (0)782 569 6815
irene.chambers@mandg.com 

Safe Harbor Statement
This communication contains certain statements related to future results, or states Aon's intentions, beliefs and expectations or predictions for the future which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from either historical or anticipated results depending on a variety of factors. These forward-looking statements include information about possible or assumed future performance and results of Aon's operations. All statements other than statements of historical facts that address activities, events or developments that Aon expects or anticipates may occur in the future, including such things as its outlook, business strategies, competitive strengths, goals, the benefits of new initiatives, growth of its business and operations, plans, references to future successes, are forward-looking statements. Also, when Aon uses the words such as "anticipate", "believe", "estimate", "expect", "intend", "plan", "probably", "potential", "looking forward", or similar expressions, it is making forward-looking statements.

Any or all of Aon's forward-looking statements may turn out to be inaccurate, and there are no guarantees about Aon's performance. Aon and its subsidiaries operate in a dynamic business environment in which new risks may emerge frequently. Accordingly, you should not place undue reliance on forward-looking statements, which speak only as of the dates on which they are made. In addition, results for prior periods are not necessarily indicative of results that may be expected for any future period. Further information concerning Aon and its businesses, including factors that potentially could materially affect Aon's financial results, is contained in Aon's filings with the Securities and Exchange Commission (the "SEC"). See Aon's Annual Report on Form 10-K for the year ended December 31, 2022, for a further discussion of these and other risks and uncertainties applicable to Aon and its businesses. These factors may be revised or supplemented in subsequent reports filed with the SEC. Aon is not under, and expressly disclaims, any obligation to update or alter any forward-looking statement that it may make from time to time, whether as a result of new information, future events or otherwise. Aon is not responsible for information contained in this communication relating to any borrower or potential borrower, including statements regarding a borrower's operations, products or services.

 

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SOURCE Aon plc

FAQ

What is Aon Advantage Funds' new investment vehicle?

Aon Advantage Funds launched a new investment vehicle to support innovative growth companies through IP-backed lending.

How much has M&G committed to Aon Advantage Funds?

M&G has committed $300 million to Aon Advantage Funds' IP-backed lending strategy.

What is the goal of Aon Advantage Funds?

The goal is to provide minimally or non-dilutive capital to technology companies with strong IP values.

How much financing has Aon facilitated through its IP Solutions?

Aon has facilitated over $1 billion in financing through its IP Solutions group.

What markets does Aon primarily target with its new investment vehicle?

Aon primarily targets innovative growth companies in North America.