L&G grows private credit AUM to £34bn
Legal & General grew its private credit assets under management (AUM) to £34bn last year, and said that private markets will be a core part of its business going forward.
In the company’s full-year results, it was revealed that L&G accelerated the growth of its private markets platform to £57bn AUM in 2024, and aims to boost this to £85m by 2028.
The firm said that it has grown its private markets business by focusing on three core areas – real estate, private credit, and infrastructure.
“Utilising balance sheet capital to catalyse opportunities, we are unlocking substantial growth and driving significant value for our clients,” the firm said.
“We have launched several new private markets funds over 2024, with £1.2bn of external committed capital.”
In real estate, AUM increased to £21bn as L&G launched its affordable housing fund with £510m of commitments, and created a new £1bn build-to-rent partnership with Nest and PGGM.
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In October 2024, the firm made a strategic investment in Taurus, a US-based real estate private equity firm, committing up to $200m (£154.6m) in seed capital to accelerate its presence in the high-growth US multi-family sector.
L&G added that it is also growing its infrastructure offering across various sectors and has achieved planning approval for a £750m hyperscale data centre in London, which will form part of an offering to third party investors in 2025.
Meanwhile, the growth of L&G’s private credit business was driven both from the L&G platform in Europe and North America and through Pemberton. In 2019, L&G acquired a majority stake in Pemberton in order to build on its private debt capabilities.
Elsewhere in the financial results, L&G reported that its core operating profit was up six per cent last year, while its asset management division grew its AUM to £1.1tn.
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“2024 has been a year of significant strategic progress and strong financial performance,” said António Simões, chief executive of L&G.
“We delivered six per cent growth in our core operating profit and core EPS, alongside excellent new business volumes, while investing for the future.
“We are seeing positive commercial momentum as we execute our strategy with rigour and pace. By sharpening our focus and simplifying our portfolio…we are strengthening our ability to generate sustainable growth in our core businesses: institutional retirement, asset management and UK retail.
“Looking ahead, our momentum demonstrates why we are confident in our ability to deliver on our ambitious targets, directing our capital and expertise where they can create lasting value, and making a meaningful impact for customers, shareholders and communities.”
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