Legal & General and Blackstone have announced a long-term strategic partnership that will see them combine their credit platforms to enhance L&G’s annuities and asset management propositions.
Under the partnership, L&G’s annuities business will leverage Blackstone’s private credit origination platform to access a better pipeline of diversified investment-grade assets, 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.”
