Legal & General

Legal & General Group plc, founded in 1836 and headquartered in London, is one of the largest financial services companies in the United Kingdom. The group operates across investment management (LGIM), capital investment (Legal & General Capital), retirement solutions, and insurance. Total assets under management exceed $1.5 trillion, with LGIM being one of the largest asset managers globally, particularly in index fund management.

Investment Strategy

Legal & General’s investment activities span its insurance operations, where the proprietary portfolio supports annuity and insurance liabilities, and LGIM, which manages assets for third-party institutional and retail clients. The group’s insurance portfolio is composed primarily of UK government gilts, investment-grade corporate bonds, and alternative credit assets matched against long-duration annuity liabilities.

The company’s pension risk transfer (PRT) business is a key strategic driver. Legal & General is one of the largest writers of bulk purchase annuities (pension buyouts and buy-ins) in the UK market. Each PRT transaction creates demand for long-dated, income-generating assets to match the assumed pension liabilities, fueling the group’s appetite for private credit, infrastructure debt, and other illiquid assets.

LGIM’s enormous scale in index and multi-asset management is complemented by growing capabilities in private markets and real assets, serving both the group’s proprietary needs and third-party mandates.

Private Markets Approach

Legal & General allocates approximately 8% of its total managed assets to alternative investments, though this figure is substantially higher when considering the insurance portfolio alone. The group’s alternatives activity operates through two primary channels.

Legal & General Capital (LGC) is the group’s direct investment platform, making principal investments in housing, clean energy, infrastructure, and alternative finance. LGC has built or funded significant housing developments across the UK, invested in early-stage clean energy technologies, and established SME lending platforms. These direct investments create proprietary assets for the group’s balance sheet.

Through LGIM and the retirement solutions division, the group invests in private credit including private placements, infrastructure debt, and commercial real estate loans. These investments are directly matched against annuity liabilities, providing long-dated income streams. LGIM’s private credit platform has grown substantially to support the PRT business.

Real estate investments include both direct property holdings and real estate finance. Infrastructure spans renewable energy, transportation, and social infrastructure across the UK and internationally. Private equity exposure includes fund commitments and co-investments with established managers.

Legal & General’s combination of massive scale, ongoing PRT-driven asset demand, and direct investment capabilities through LGC makes it one of the most important insurance company investors in UK and European private markets.