Legal & General Capital (“LGC”) recently held a Capital Markets event which provided an overview of LGC’s alternative asset strategy and ambitions . We highlight below several “proof-points” which demonstrate that LGC’s strategy is being executed effectively to generate significant shareholder value.
11 Nov 2021
Collectively, these four transactions are expected to generate a return of 1.6x the initial investment.
Laura Mason, CEO of LGC: “LGC’s recent transactions are valuable “proof-points”, demonstrating LGC’s ability to realise significant value for shareholders from its alternative asset portfolio. We will invest the proceeds from these transactions into further compelling alternative investment opportunities – in the UK and overseas – in line with our 10-12% return ambition range.”
Jeff Davies, Group CFO: “Legal & General has a strong track record of realising value from investments, demonstrated by our 20% ROE. LGC is increasingly contributing to the Group’s financial metrics. Including the proceeds from the previously announced sale of a retail investment back-book in our Personal Investing business4 alongside the LGC transactions, we expect to realise cash income of more than £500m. This puts us in a strong position to continue investing.”
Legal & General Capital (LGC) is Legal & General Group’s alternative asset platform, creating assets for Legal & General Retirement and third-party clients in order to achieve improved risk-adjusted returns for our shareholders. LGC has built its capabilities in a range of alternative sectors, including in residential property; specialist commercial real estate; clean energy; alternative credit; and venture capital, which are all supported by long-term structural growth drivers, meet a financing gap and respond to a scarcity of supply that is underpinned by enduring societal needs.
Its purpose is to invest society’s capital for society’s benefit. Investing in the real economy and supporting the Group’s focus on climate and inclusive capitalism, LGC’s investments create jobs, change lives and contribute towards a net zero carbon future.
Legal & General has invested over £29bn in levelling-up regional economies, including through major UK-wide regeneration schemes and has recently made a commitment to enable all its new homes to operate at net zero carbon emissions from 2030.
*at 31 Jun 2021
Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with over £1.2 trillion in total assets under management* of which 39% is international. We have a unique and highly synergistic business model, which continues to drive strong returns. Legal & General provides powerful asset origination and management capabilities directly to clients, which also underpin our leading retirement and protection solutions. We are a leading international player in Pension Risk Transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. Our purpose is to improve the lives of our customers and create value for our shareholders. Through inclusive capitalism, we are investing in long-term assets, such as real estate and infrastructure, that can help build a better society for the future.
*as at HY 2023
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