L&G and Blackstone announce strategic partnership
Legal & General and Blackstone have announced a long-term strategic partnership, whereby L&G’s annuities business will use Blackstone to source investment-grade private credit deals, mostly from the US.
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L&G will invest up to 10 per cent of anticipated annuities new business flows, adding to the $237bn (£174bn) in third-party insurance assets Blackstone manages across investment-grade private credit, liquid credit, and other strategies.
L&G’s asset management business will develop public/private hybrid credit solutions that combine Blackstone’s private credit platform with L&G’s active fixed income capabilities, the businesses said.
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“L&G will benefit from a more diverse pipeline of assets for our annuity book, and growth in asset management as we develop more sophisticated investment solutions for clients around the world,” said António Simões, group chief executive of L&G.
“We’re thrilled to partner with L&G, a world-class firm with strong performance that we have long admired,” added Jon Gray, president and chief operating officer at Blackstone.
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“Blackstone has been a pioneer in bringing the benefits of private markets investing to insurance companies, individuals and institutional investors.
“Together, our two firms’ unmatched scale and expertise should drive innovative solutions in the private credit market.”
Insurers and pension firms are increasingly partnering with private credit fund managers to access the sector’s attractive returns and regular income.
