L&G and Blackstone announce partnership
Legal & General and Blackstone are announcing a long-term strategic partnership to enhance L&G’s competitive advantage in annuities and bolster its asset management proposition in key geographies and channels.
L&G’s annuities business will leverage Blackstone’s private credit origination platform to access a pipeline of diversified investment-grade assets, predominantly from the US. L&G will invest up to 10% of anticipated annuities new business flows. Additionally, 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.
“Today’s announcement marks another important step in delivering our strategy for focused, sustainable growth and enhanced shareholder returns. Complementing L&G’s own insurance, investment and asset origination capabilities, our partnership with Blackstone will further cement our market leading position in pension risk transfer, and enable us to address growing demand for public-private hybrid investment products. 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.” – António Simões, Group CEO, L&G.
“We’re thrilled to partner with L&G, a world-class firm with strong performance that we have long admired. 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.” – Jon Gray, President and Chief Operating Officer, Blackstone.
“In June, we set out our vision as a leading global investor innovating to solve client challenges, using the power of L&G. This partnership brings together the combined strengths of L&G and Blackstone’s respective credit businesses, to offer new, innovative investment solutions and extend our international reach. I am especially energised by the potential of our alliance to advance our proposition in global wealth and wholesale channels, and deepen the capabilities we can draw upon to support our institutional clients.” – Eric Adler, CEO, Asset Management, L&G.
“We believe this partnership shows the best of what Blackstone can offer to our insurance company clients. The breadth of our capabilities allows us to support our partners across their businesses – originating assets, working together to identify investment opportunities, and designing products that meet the needs of both institutional clients and individual investors.” – Philip Sherrill, Global Head of Insurance, Blackstone.
