L&G and Investec have reached a milestone after providing more than £4.2bn ($5bn) in loans to private market funds since 2021.
The partnership has allowed more private market sponsors to access flexible term loan solutions.
L&G expanded its short-term alternative finance strategy to £2bn in assets under management (AUM) by working with Investec and other banks.
This is part of L&G’s £71bn private markets platform, focusing on sub-1-year private credit assets.
The portfolio includes capital call facilities, supply chain finance, trade receivables, and asset-backed loans, and is aimed at institutional investors such as insurers, pension funds, endowments, and family offices.
Matthew Taylor, head of alternative debt, asset management at L&G, said: “Surpassing £2 billion in AUM for our short-term alternative finance strategy reflects the growing appetite among institutional investors for innovative private credit solutions.
“This demand has been especially strong from insurers, who are seeking capital-efficient, short-duration assets with robust credit quality.
“Our partnership with Investec has been instrumental in meeting this need – providing a reliable flow of high-quality assets that help us deliver enhanced returns with low duration and volatility across our broad client base.”
Grant Crosby, head of fund solutions at Investec, said: “Our partnership with L&G demonstrates how institutional capital can be deployed to support the evolving needs of private market clients at scale.
“L&G is one of the cornerstone investors in Investec’s Partnership Capital model, which brings institutional investors alongside Investec in fund finance transactions, enabling its Fund Solutions team to deliver larger, more tailored financing to private funds.
“This approach reinforces our commitment to leading innovation in the fund finance market and to delivering the scale needed to support its continued growth.”
