LONDON (Reuters) -British insurer Legal & General has entered into a private credit partnership with Blackstone, the companies said in a statement on Thursday, becoming the latest finance firm to bulk up in the booming market of investors lending to companies.
L&G, which is also Britain’s largest investment firm with 1.1 trillion pounds ($1.5 trillion) of assets under management, said the tie-up would help it strengthen in two areas targeted by CEO Antonio Simoes: the United States and private credit.
The British firm said its annuities business would access investment-grade credit assets via Blackstone, particularly in the U.S., investing up to 10% of the unit’s new business flows.
Simoes said in the statement that the partnership with Blackstone would help it meet growing demand from clients for public-private investment products.
“L&G will benefit from a more diverse pipeline of assets for our annuity book, and growth in asset management as we develop more sophisticated investment solutions for clients around the world,” Simoes said.
The partnership was first reported by Bloomberg News.
($1 = 0.7349 pounds)
(Reporting by Iain Withers in London and Dheeraj Kumar in Bengaluru; Editing by Sonia Cheema and Joe Bavier)
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