Legal & General today confirmed that its Venture Capital and SME investment programme, which also includes its innovative "SE-Assist" product for social enterprises, has now made investments in over 100 UK-based companies, and is on track to double that number during 2018.
7 Nov 2017
Early-stage companies which have benefited from Legal & General’s VC funding now have a combined Enterprise Value of over £10bn. Prime areas of focus have included technology, analytics, life sciences and digital healthcare, with a particular emphasis on investments in companies located outside London.
Legal & General’s VC investment programme is conducted alongside seven partner-managers. These include OSI (Oxford Sciences Innovation), CIC (Cambridge Innovation Capital), ADV (Accelerated Digital Ventures), a joint venture with British Business bank which specialises in investee companies outside the London-Oxford-Cambridge triangle, Atomico, Anthemis, Kindred and Balderton.
In addition, Legal & General provides debt finance to SMEs through its £2bn AUM (and growing) Pemberton investment.
Laura Mason, Director of Direct Investments at Legal & General Capital, commented: "Our £12bn regeneration programme for UK cities showed that, alongside investment in physical infrastructure, we need more patient capital for growth businesses. Our universities are great at research, but less good at commercialising new technology. Our entrepreneurs are great at start-ups but often struggle to scale up. We want more companies listing onto the London Stock Exchange. There is a fantastic opportunity for DB and DC pension schemes to help support this with an allocation to patient capital investments. In return for a relatively modest capital commitment, we have been able to already help over 100 companies that could otherwise get caught in the "funding gap" above the EIS/VCT stage of development. We are about half way through our investment programme and expect to hit the 200 company-mark during 2018."
Legal & General has a strong track record of providing capital for the UK’s growth businesses.
In the UK small cap market, Legal & General Investment Management (LGIM) is one of the leading providers of finance for quoted Technology companies under £200m.
In addition to its Venture Capital investments, LGC has a 40% stake in Pemberton, the independent alternative asset manager focussed on direct lending to European mid-market corporates. Following on from raising one of Europe’s largest ever first time manager private debt funds (at €1.2bn) and winning Global Fund Manager of the Year at the 2016 Private Debt Investor awards, Pemberton is now raising multiple new fund offerings including a UK Mid-Market Direct Lending Fund.
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.
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