Legal & General Capital makes first U.S. investment, with seed capital for $4 billion platform to fund major life science and technology assets across multiple regional U.S. markets

Legal & General Capital (LGC) today announced that it has formed a 50:50 partnership with U.S.-based real estate developer Ancora to create a real estate platform dedicated to driving life science, research and technology growth across the U.S.  The deal will see Legal & General Capital investing an initial $500 million of seed capital to form a new company, Ancora L&G, LLC. Operating under the name Ancora, the business’ geographic focus will sit predominantly within emerging regional markets in the U.S. where early mover advantages are available.

The new venture builds on the successful track record of Ancora’s team and the investing record of LGC in the UK, including over $5 billion currently committed to science and technology development projects at Oxford and Manchester universities. Ancora will be capitalized by LGC to deliver $4 billion (£3.2bn) of existing pipeline and planned acquisition and development activity over the next five years. To support future growth, LGC is seeking third party co-investment partners to accelerate scaling the portfolio. As with other LGC investments, LGC aims to finance longer term cashflows and use them to back Legal & General’s annuity business, providing better value for policyholders and greater options for investors. LGC has a strong track record of establishing and scaling up innovative businesses and has led the way in driving science and technology growth through its Bruntwood SciTech partnership, the UK’s leading developer of innovation districts.  Bruntwood SciTech has quickly expanded over 11 UK locations, a model LGC will look to replicate across the U.S.

Legal & General Group currently manages over $1.8 trillion of assets globally and is increasing its presence in the U.S. for both equity and debt vehicles. Marking LGC’s first venture into the U.S., this partnership with Ancora forms an important part of its major growth strategy to deliver internationalization and attract third party capital.

Ancora is a privately owned real estate firm based in Durham, North Carolina with team members in Baltimore, Boston, Chicago, Indianapolis, New York, and Washington, DC. The firm acquires and develops real estate to serve high-growth science, technology, and innovation tenants in partnership with and proximate to leading U.S. anchor institutions. Core to Ancora’s program-first approach is undertaking development activity in direct partnership with anchor institutions such as universities, academic medical centres, government, and research institutes with whom they have strong and long-lasting relationships. This unique approach in the U.S. market resonates with the way LGC has looked to deploy capital through leveraging strategic partnerships to invest in socially and economically useful developments around the globe.

Ancora L&G, LLC will be led by Josh Parker as Chief Executive Officer, alongside John Philipchuck as Chief Investment Officer, Jeff Kingsbury as Chief Connectivity Officer and Nicole Morrill as Chief Real Estate Officer. LGIMA’s Kristina St. Charles will move across from LGIMA as General Counsel and Legal & General’s Sujee Rajah, FCA ICAEW, will move across to Ancora L&G, LLC as its new Chief Finance Officer. Having qualified with Deloitte’s Assurance department, he has held various senior roles within the Legal and General Group, most recently as Group Investor Relations director. As part of its growth ambitions, Ancora will work closely with Legal & General Investment Management (LGIM) and its global client base as LGIM continues to expand its Real Assets expertise into the US market. 

At its Capital Markets Event at the end of last year, LGC set out plans to generate up to £600 million in profit from alternative assets by 2025, growing its alternative asset portfolio to £5 billion and generating returns of around 10 to 12 percent per annum, across its key focus areas of housing, small and medium-enterprise finance, specialist commercial real estate and clean energy. It is now looking at each of these sectors as part of its U.S. expansion.