Legal and General Asset Management’s (L&G AM’s) fund finance partnership with UK bank Lloyds has surpassed £1.5bn as asset managers and banks continue to collaborate across private markets.
The partnership was launched in 2022, with Lloyds originating and structuring the loans, while £1.2tn L&G AM provides the financing as the manager continues to grow its £2bn short-term alternative finance strategy.
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“By working with Lloyds, we are able to access high-quality, short-duration assets for our clients, where we are seeing particularly strong demand from insurers for low-duration investments with robust credit quality,” said Matthew Taylor, head of alternative debt, asset management at L&G.
“Structures like this are an important part of how we scale our short-term alternative finance strategy while supporting the financing needs of private market sponsors.”
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Fund finance partnerships between banks and asset managers have continued to grow as banks are increasingly constrained by capital and regulatory requirements, while institutional investors have pools of capital they want to invest.
“We have worked closely with clients in this market for many years, evolving our financing solutions as their needs change and supporting them by combining our origination capabilities with institutional capital to deliver funding at scale,” said Jill Wilson, managing director, financial sponsors, Lloyds.
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