L&G sees “good momentum” in private markets as AUM ticks up to £52bn
Legal & General (L&G) saw its private markets assets under management (AUM) increase by 8.3 per cent year-on-year to £52bn in the first half, as it heads towards its £85bn target by 2028.
The FTSE 100 insurance and investments group announced in June that it was merging Legal & General Investment Management (LGIM) and Legal & General Capital (LGC) to create a new asset management division, of which private markets would be a key focus.
“We are making clear progress on delivering against our strategy, notably in the establishment of a single asset manager,” L&G chief executive António Simões said in the first-half results statement. “We have good momentum in private markets, launching a new fund to offer diversified exposure to Defined Contribution pension scheme members, and establishing our affordable housing fund, leveraging pension capital to build new homes.”
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The firm’s overall results were stable, with core operating profit up 0.6 per cent year-on-year to £849m, from £844m at the end of the first half in 2023. This was ahead of the firm’s own estimate of £834m.
Pre-tax profit fell from £393m to £316m.
Overall AUM came in at £1,136bn, down from £1,170bn at the end of the first half in 2023.
The firm reported interim dividends per share of 6p, up from 5.71p.
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Looking ahead, L&G said that private markets will be a major driver of asset management growth both directly in L&G and through its origination partners such as Pemberton.
“We can access and originate differentiated investment opportunities in private credit, real estate and infrastructure for our clients and for our annuity balance sheet as it grows,” the firm added.
L&G also said that it is expanding its private markets capabilities in the US, through the creation of a real estate equity platform.
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