{"id":34055,"date":"2025-07-10T15:53:05","date_gmt":"2025-07-10T15:53:05","guid":{"rendered":"https:\/\/financialrush.com\/?p=34055"},"modified":"2025-07-10T15:53:05","modified_gmt":"2025-07-10T15:53:05","slug":"legal-general-agrees-up-to-20bn-private-credit-partnership-with-blackstone","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=34055","title":{"rendered":"Legal &#038; General agrees up to $20bn private credit partnership with Blackstone"},"content":{"rendered":"<p> \n<\/p>\n<div>\n<p>Stay informed with free updates<\/p>\n<p class=\"article__content-sign-up-topic-description o3-type-body-base\"><span>Simply sign up to the <!-- -->Financial services<!-- --> myFT Digest &#8212; delivered directly to your inbox.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=bbe4cf3e-0148-4084-bd8b-09a5d5504d81&amp;concept-id=a829e170-bd47-44e2-b504-bafcd70f1d38\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>UK insurer Legal &amp; General has struck a private credit partnership with Blackstone that the US alternative assets giant said could be worth up to $20bn by the end of the decade.<\/p>\n<p>Blackstone will source private credit deals for the FTSE 100 company\u2019s annuities business, in the latest example of European insurance and pension groups tapping US private capital groups to increase their exposure to a fast-growing asset class.<\/p>\n<p>Under the agreement, L&amp;G\u2019s annuities business will use Blackstone to source investment-grade private credit deals, mostly from the US, the companies said, with L&amp;G investing up to 10 per cent of new flows from its annuities business.\u00a0<\/p>\n<p><a href=\"https:\/\/www.ft.com\/stream\/dabf1f8e-ce0b-4812-9e9b-7a8877f2d29a\" data-trackable=\"link\">L&amp;G<\/a> said the annuities origination agreement could be worth \u00a31bn to \u00a31.5bn each year over the next five years. The insurer\u2019s asset management business also plans to develop \u201cpublic-private hybrid\u201d credit products as part of the partnership.<\/p>\n<p>L&amp;G chief executive Ant\u00f3nio Sim\u00f5es said the insurer would benefit from \u201ca more diverse pipeline of assets for our annuity book, and growth in asset management\u201d.<\/p>\n<p>The \u00a31.1tn insurer has been pushing into private markets under Sim\u00f5es, including <a href=\"https:\/\/www.ft.com\/content\/5b056d05-e057-4845-be04-1d650490ad79\" data-trackable=\"link\">taking a 75 per cent stake<\/a> in $3.5bn global real estate private equity group Proprium Capital Partners this year. <\/p>\n<p>That deal came after it <a href=\"https:\/\/www.ft.com\/content\/4ef62c2e-e7c0-4488-ad01-221cd553535a\" data-trackable=\"link\">poached Eric Adler from US insurer Prudential<\/a> to lead its asset management division, having combined the unit with its private markets business. <\/p>\n<p>L&amp;G said its asset management partnership with Blackstone to develop \u201chybrid\u201d credit products could offer clients in its wealth and wholesale businesses potentially higher returns, with more liquidity.<\/p>\n<p>The Blackstone tie-up comes a week after Bermuda-based Athora, backed by US private capital group Apollo, announced an agreement to <a href=\"https:\/\/www.ft.com\/content\/8202d3cb-5399-416a-8920-9c44187efae0\" data-trackable=\"link\">acquire the UK\u2019s Pension Insurance Corporation<\/a>. <\/p>\n<aside aria-labelledby=\"aside-label\" class=\"n-content-recommended--single-story n-content-recommended--inset\" data-component=\"recommended\">\n<p class=\"n-content-recommended__title o3-type-body-highlight\">Recommended<\/p>\n<div class=\"o-teaser o-teaser--article o-teaser--small o-teaser--stacked o-teaser--has-image js-teaser\" data-id=\"ab7a5547-8175-438f-b81d-e2aaf5a3fd24\">\n<div class=\"o-teaser__image-container js-teaser-image-container\"><a href=\"https:\/\/www.ft.com\/content\/ab7a5547-8175-438f-b81d-e2aaf5a3fd24\" data-trackable=\"image-link\" data-trackable-context-story-link=\"image-link\" tabindex=\"-1\" aria-hidden=\"true\"><\/p>\n<div class=\"o-teaser__image-placeholder\" style=\"aspect-ratio:2048\/1152\"><\/div>\n<p><\/a><\/div>\n<\/div>\n<\/aside>\n<p>The deal related to the lucrative insurance niche of bulk annuities, a market that is booming, with British companies expected to offload about \u00a3500bn of retirement obligations and the assets backing them to insurers over the next decade.<\/p>\n<p>Blackstone has proved more attractive to some asset managers because it is not regarded as having the same potential conflicts of interest as rival fund managers, such as Apollo and KKR, that own an insurance business outright while managing assets for others, in exchange for a fee.<\/p>\n<p>The group previously owned about a third of Rothesay, a pension insurer and PIC rival, which it sold in 2020 to Singapore\u2019s sovereign wealth fund GIC and US insurer MassMutual, in a deal that <a href=\"https:\/\/www.ft.com\/content\/b7ad54cb-4c51-4316-8a64-cfd2193b76ac\" data-trackable=\"link\">valued Rothesay at \u00a35.75bn<\/a>.<\/p>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.ft.com\/content\/bbe4cf3e-0148-4084-bd8b-09a5d5504d81\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Stay informed with free updates Simply sign up to the Financial services myFT Digest &#8212; delivered directly to&hellip;\n","protected":false},"author":5,"featured_media":34056,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[],"class_list":["post-34055","post","type-post","status-publish","format-standard","has-post-thumbnail","category-us","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/34055","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=34055"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/34055\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/34056"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=34055"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=34055"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=34055"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}