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.”
Notes to editors
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.
(As of June 2021)
Established in 1836, Legal & General is one of the UK’s leading financial services groups and a major global investor, with international businesses in the US, Europe, Middle East and Asia. With almost £1.3 trillion in total assets under management*, we are the UK’s largest investment manager for corporate pension schemes and a UK market leader in pension risk transfer, alternative asset origination, life insurance, workplace pensions and retirement income. Through inclusive capitalism, we aim to build a better society by investing in long-term assets that benefit everyone.
* at 30 June 2021
This announcement may contain certain forward-looking statements relating to Legal & General, its plans and its current goals and expectations relating to future financial condition, performance and results. By their nature, forward-looking statements involve uncertainty because they relate to future events and circumstances which are beyond Legal & General’s control, including, among others, UK domestic and global economic and business conditions, market-related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory and Governmental authorities, the impact of competition, the timing impact of these events and other uncertainties of future acquisitions or combinations within relevant industries. As a result, Legal & General’s actual future condition, performance and results may differ materially from the plans, goals and expectations set out in these forward-looking statements and persons reading this announcement should not place reliance on forward looking statements. These forward-looking statements are made only as at the date on which such statements are made and Legal & General does not undertake to update forward-looking statements contained in this announcement or any other forward-looking statement it may make.