LONDON (ShareCast) - (Sharecast News) - Legal & General announced a strategic partnership with Blackstone on Thursday, aimed at strengthening its annuities business and expanding its global asset management proposition.
The FTSE 100 company said the collaboration would see it tap into Blackstone's vast private credit origination network to access a diversified pipeline of predominantly US-based, investment-grade assets.

Under the agreement, L&G said it would invest up to 10% of anticipated annuities new business flows through Blackstone's platform.

The move was intended to bolster returns and support L&G's growth ambitions, while complementing its existing asset origination capabilities.

L&G group chief executive officer António Simões said the tie-up would enhance shareholder returns and support sustainable growth.

"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."

Blackstone currently manages $237bn in third-party insurance assets across private and liquid credit strategies.

At the same time, the two firms would develop hybrid public-private credit products by combining Blackstone's private credit expertise with L&G's fixed income capabilities, in a bid to accelerate L&G's expansion into global wealth and wholesale markets.

The deal would bring together L&G's £92bn annuities book and £1.1trn in assets under management with Blackstone's $465bn credit platform.

"We're thrilled to partner with L&G, a world-class firm with strong performance that we have long admired," said Blackstone president and chief operating officer Jon Gray.

"Together, our two firms' unmatched scale and expertise should drive innovative solutions in the private credit market."

Eric Adler, CEO of L&G's asset management arm, added: "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."

At 0930 BST, shares in Legal & General Group were up 0.9% at 253.16p.

Reporting by Josh White for Sharecast.com.

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