L&G targets private markets growth as it merges asset management units
Legal & General is streamlining its asset management business into a single division, as it looks to grow its private markets assets under management (AUM) to £85bn by the end of 2028.
Legal & General Investment Management (LGIM) and Legal & General Capital (LGC) will be merged into a unified, global, public and private markets asset manager.
By the end of 2028, the asset management business is targeting operating profit of between £500m and £600m, and cumulative annualised net new revenues of between £100m and £150m between 2025 and 2028.
It expects to grow its private markets platform AUM to £85bn, from £48bn at the end of 2023.
“We plan to materially scale our in-house and origination platform capability in private markets, significantly expanding our capabilities and client offerings across real estate, private credit and infrastructure, including through an accelerated programme of fund launches,” the firm said.
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LGIM has begun a search for a chief executive to lead the combined asset management division after Michelle Scrimgeour announced she would be stepping down from the role.
Scrimgeour will continue in her current role until a new appointment is made, and will lead the transition and establishment of the new division with chief executive of private markets Laura Mason.
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“L&G is in prime position to respond to and benefit from major structural and societal changes,” said Legal & General Group chief executive António Simões. “Changing demographics, climate transition, economic uncertainty and technology are driving demand for trusted, experienced investors that can manage risk through the cycle, originate productive assets, and deliver returns for savers.
“By seizing the opportunity in institutional retirement while investing to scale and deepen our capabilities in asset management and retail, we will evolve our business to better address society’s changing investment needs, and shift towards fee-based earnings at higher returns on capital. We will make the most of our international business opportunities, with a particular focus on the US.”
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