Legal & General Group will bring together its investment management business and alternatives platform to create a single asset management division, aiming to almost double its private markets platform assets, and will "seize the significant" pension risk transfer opportunity under a new strategy.
L&G announced a refreshed strategy and financial targets June 12, following “a rigorous review of the business,” a statement said. As part of the move, it will bring Legal & General Investment Management together with its alternatives platform, Legal & General Capital.
The move will create a single, global money manager investing across public and private markets, with plans to “materially scale our in-house and origination platform capability in private markets, significantly expanding our capabilities and client offerings across real estate, private credit and infrastructure, including through an accelerated program of fund launches,” the firm said. It plans to almost double its private markets platform assets under management by 2028 to £85 billion ($108.2 billion), from £48 billion as of Dec. 31.
LGIM CEO Michelle Scrimgeour will step down, and a global search is underway for a CEO to lead the growth of the combined asset management division. Scrimgeour will remain as CEO until the appointment is made and will lead the transition and establishment of the new division alongside Laura Mason, who has been appointed as CEO of private markets. Mason is currently CEO of L&G Capital.
Both Scrimgeour and Mason will report to Antonio Simoes, group CEO.
Regarding institutional retirement, the firm’s pension risk transfer unit, “the group is well-placed to seize the significant institutional retirement opportunity, both in the U.K. and internationally,” the statement said.
“Our vision is for a growing, simpler, better-connected L&G, focused on three core business divisions, and set apart by our shared sense of purpose and powerful synergies,” Simoes said in the statement.
“By seizing the opportunity in institutional retirement while investing to scale and deepen our capabilities in asset management and retail, we will evolve our business to better address society’s changing investment needs, and shift towards fee-based earnings at higher returns on capital. We will make the most of our international business opportunities, with a particular focus on the U.S.”
