Press release
L&G launches digital infrastructure fund to drive growth in digital economy
The UK & Europe-focused fund hits c.€600m first close amid strong investor demand, as L&G turns its Asset Management ambition into action.
9 Sept 2025
Full press release
- Fund invests primarily in European and UK infrastructure essential to the digital economy, focusing on data centres, fibre, wireless connectivity and cloud services - with selective global exposure expected mainly in the US
- Demonstrates momentum behind L&G’s strategy to scale its private markets platform to £85bn by 2028, expanding investment opportunities for institutional investors
- Builds on infrastructure fundraising success, following final €607m close of L&G NTR Clean Power (Europe) Fund
L&G today has announced the first close of its L&G Digital Infrastructure Fund (“LDIF” or “the fund”), totalling c.€600 million in commitments and associated co-investments, with a second close expected later this year. The launch is a key milestone in L&G’s Asset Management strategy to expand its private markets proposition.
LDIF exemplifies L&G’s ability to combine deep sector expertise and client relationships with the strength of its balance sheet to incubate solutions aligned to long-term macroeconomic trends. The fund enables L&G to capitalise on the €2.5 trillion gap in funding needed by 2030 to meet accelerating demand for digital infrastructure1. Targeting a gross IRR of 15%, LDIF aims to invest in high-quality, productive and fast-growing businesses and assets that advance digital transformation, enhance connectivity and deliver long-term economic benefits. The fund invests primarily in Europe and the UK with a smaller, selective global allocation, expected to be focused mainly on the US.
Structured as an Article 82 Luxembourg-domiciled fund, LDIF has attracted a diverse mix of institutional capital. Investors include third-party commitments from local government pension schemes, specialist infrastructure funds and global asset managers, with L&G investing alongside clients via its balance sheet.
LDIF builds on L&G’s infrastructure fundraising momentum following the final close earlier this year of the L&G NTR Clean Power (Europe) Fund, in partnership with leading renewable energy specialist NTR, which raised over €600 million3 to invest in renewable energy assets. Together, these funds underline L&G’s ability to develop and scale institutional-grade strategies across digital transformation and energy transition – two of the most powerful long-term themes shaping global economies.
Eric Adler, CEO, Asset Management, L&G: “Infrastructure is rapidly becoming a cornerstone of global private markets, with digital infrastructure leading the charge. The successful first close of our Digital Infrastructure Fund highlights continued momentum behind our strategy to expand our private markets capabilities and reflects growing institutional appetite for essential, yield-generating assets. It is also a further step toward fulfilling our ambition to be a leading global investor, innovating to solve complex challenges for our clients using the power of L&G.”
As an early mover in digital infrastructure, first investing in 2018, L&G has built an established team of specialists averaging 15 years’ experience. In 2019, it made a strategic investment in Kao Data, a leading UK head-quartered developer and operator of high-performance data centres, which has since expanded to seven facilities across four locations and continues to grow. Other significant investments include a £750 million hyperscale data centre development in Newham, London, expected to contribute £88 million to local gross value added (GVA), create over a thousand jobs during the construction and operational phases4, and has the potential to be a heat source for thousands of homes in the area.
To further build the team and meet growing demand for the fund, L&G has appointed Jack Colbourne as a non-executive director on LDIF’s investment committee. Jack was previously a Partner and Investment Committee Chair at c.€10 billion AUM European mid-market Arcus Infrastructure Partners. L&G has also hired Achal Arora as Managing Director – Digital Infrastructure Investments. He joins from Macquarie Asset Management, where he was Managing Director in the European digital infrastructure team.
Matteo Colombo, Head of Digital Infrastructure Investments, Asset Management, L&G: “The launch of our Digital Infrastructure Fund marks a significant next step in our commitment to invest in the infrastructure that underpins the digital economy. From AI and cloud computing, to data sovereignty and connectivity, the demand for robust digital infrastructure is accelerating across Europe. We’re leveraging our deep sector expertise, further enhanced with the recruitment of Jack and Achal, and strategic partnerships to identify and scale investments that offer strong long-term value for investors while supporting innovation, inclusion and economic resilience.”
References
1L&G estimate as at August 2024.
2As an Article 8 fund, it integrates sustainability and/or ESG factors into its investment process, which may limit exposure to certain sectors, affect performance relative to other funds, and differ from individual investor criteria.
3€607m raised from investors, which includes €584m of commitments to the Fund and €23m in deployed and allocated co-investment capital alongside the Fund.
4Employment during construction is temporary and measured in job years (one job year is one worker employed for one year), while operational employment is permanent and measured in jobs.
Further information
