In the lending business: L&G and Blackstone enter into strategic partnership

Legal & General (L&G) and Blackstone announce a strategic partnership. The collaboration aims to accelerate the growth ambitions of both companies and strengthen L&G's competitive position in the pensions business.

L&G will invest up to 10 percent of its expected new business flows from its pensions business through Blackstone's private credit platform. This will provide the company with access to diversified investment-grade assets, predominantly from the United States. Blackstone already manages $237 billion in third-party insurance assets.

In addition, L&G Asset Management plans to develop public-private hybrid credit solutions with Blackstone . This collaboration combines Blackstone's private credit platform with L&G's expertise in active fixed income.

The partnership combines L&G's market leadership in pension risk transfer and asset management with Blackstone's credit platform. L&G has a pension book valued at $122.5 billion (£92 billion) and manages $1.4 trillion (£1.1 trillion) in assets. Blackstone operates a credit platform with $465 billion.

"This partnership brings together the combined strengths of L&G and Blackstone's respective lending businesses," said Eric Adler, CEO of Asset Management at L&G . António Simões, Group CEO of L&G, emphasized that the cooperation will further consolidate the market-leading position in the pension risk transfer business.

Jon Gray, President and Chief Operating Officer of Blackstone , says Blackstone is a pioneer in bringing the benefits of private markets investing to insurance companies.

Founded in 1836, L&G is one of the UK's leading financial services providers. The company manages £1.1 trillion in assets, approximately 44 percent of which are international. Blackstone Credit & Insurance (BXCI) is one of the world's leading credit investors, investing in private investment grade, asset-based lending, and other credit strategies.