L&G agrees up to $20bn private credit partnership with Blackstone

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favorite tales on this weekly publication.UK insurer Authorized & Common has struck a personal credit score partnership with Blackstone that the US various property big mentioned could possibly be value as much as $20bn by the top of the last decade.Blackstone will supply personal credit score offers for the FTSE 100 firm’s annuities enterprise, within the newest instance of European insurance coverage and pension teams tapping US personal capital teams to extend their publicity to a fast-growing asset class.RecommendedUnder the settlement, L&G’s annuities enterprise will use Blackstone to originate investment-grade personal credit score property, largely from the US, the businesses mentioned, with L&G investing as much as 10 per cent of recent flows from its annuities enterprise. L&G mentioned the annuities origination settlement could possibly be value £1bn to £1.5bn annually over the subsequent 5 years. The insurer’s asset administration enterprise additionally plans to develop “public-private hybrid” credit score merchandise as a part of the partnership.L&G chief government António Simões mentioned the insurer would profit from “a extra various pipeline of property for our annuity e book, and progress in asset administration”.