Legal & General Group (L&G) and Blackstone have announced a long-term strategic partnership expected to channel up to $20 billion of new annuity premiums into US investment-grade private credit over the next five years. The agreement, confirmed by both companies on 10 July, will see L&G allocate up to 10 percent of every new annuity premium to a mandate focused on senior US loans originated by Blackstone.
Antonio Simões, group CEO of L&G, said: “Our partnership with Blackstone… will diversify the pipeline of assets backing our £92bn annuity book and broaden the investment solutions we can offer clients worldwide.”
Blackstone president and COO Jon Gray said: “The combination of our scale in private markets and L&G’s insurance expertise should drive innovative solutions in the private-credit space.”
L&G’s asset management arm, LGIM, and Blackstone will also collaborate on new public-private “hybrid” credit funds for global wealth channels. The partnership is effective immediately, with the first capital deployments expected in the second half of 2025.
The move follows similar insurance–asset management tie-ups seen in recent years, including Apollo–Athene and KKR–Global Atlantic. Blackstone’s credit platform manages $465 billion in assets, while L&G’s annuity portfolio stands at £92 billion. Industry data from Preqin shows global private-credit assets under management surpassed $1.7 trillion in 2024. The partnership is expected to benefit from upcoming “Solvency UK” regulatory reforms, which reduce capital charges on investment-grade credit and infrastructure.
At L&G’s 2024 new-business premium of £9.5 billion, a 10 percent allocation would equate to around £950 million a year, or £4.75 billion over five years, supporting the scale of the new mandate.
