Legal & General Capital commits £5bn of alternative asset investments in 2022

Written by Michael Griffiths

03/01/2023

Legal & General Capital has announced that it committed around £5bn towards levelling up UK towns and cities across 2022.

The group stated that its commitments have helped to drive regional economic growth, tackling the housing crisis, and supporting the climate transition.

Last year also saw L&G expand its footprint into the US for the first time.

Despite globally economic uncertainty, L&G Capital has significantly increased its alternative asset commitments in 2022. The group has backed the delivery of over 17,000 new homes, 2.7 million sq ft of commercial real estate across the UK and US, and invested in multiple innovative clean energy businesses to support the transition to a low carbon economy.

L&G Capital said its commitments in 2022 mean it is on track to deliver against its stated ambitions to generate up to £600m in profit from alternative assets by 2025, with returns of around 10% to 12% per annum, across its key focus areas of housing, SME finance, specialist commercial real estate, digital infrastructure and clean energy.

CEO of Legal & General Capital, Laura Mason, said that 2022 was a “landmark year” for the group.

“We have made major commitments to deliver transformational schemes in all our alternative asset specialisms across both the UK and, for the first time, the US,” Mason commented.

“Much of this has come through strategic partnerships with like-minded investors, who are seeking stable, long-term returns, but also looking to drive positive social impact and limit the impacts of climate change.

“With an increasingly uncertain picture over the next 12 months, it’s essential that financial institutions continue to invest in the real economy, recycling pensions funds and savings into projects that help to create jobs, housing and vital infrastructure. Despite headwinds, our appetite to continue to invest globally, alongside other institutional partners, remains strong for 2023.”

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