Legal and General (L&G) and Investec Bank have passed €5bn (£4.4bn) in loans to private markets through their fund finance partnership, as L&G’s short-term alternative finance strategy tops £2bn in assets under management (AUM) driven by rising insurer demand.
The fund finance partnership between L&G and Investec has helped broaden access to flexible term loan solutions for private market sponsors.
Alongside this, L&G, which manages £1.1tn in assets, said its partnership with Investec and other global banks has secured a strong pipeline of investments, helping scale its short-term alternative finance strategy to £2bn.
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Part of L&G’s £71bn private markets platform, the strategy targets sub-one-year private credit assets and aims to offer institutional investors, including insurers, pension schemes, endowments and family offices, investment-grade alternatives to cash and other short-duration instruments.
“Surpassing £2bn in AUM for our short-term alternative finance strategy reflects the growing appetite among institutional investors for innovative private credit solutions,” said Matthew Taylor, head of alternative debt at L&G Asset Management. “Demand has been particularly strong from insurers seeking capital-efficient, short-duration assets with robust credit quality.”
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“Our partnership with L&G shows how institutional capital can be deployed at scale to meet the evolving needs of private-market clients, said,” Grant Crosby, Investec’s head of fund solutions. “L&G is a cornerstone investor in Investec’s Partnership Capital model, which brings institutional investors alongside Investec in fund finance transactions and enables our fund solutions team to deliver larger, more tailored financing to private funds.”
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