Legal & General targets GBP5 billion in assets for L&G Capital

(Alliance News) - Legal & General Group PLC on Thursday set out targets for its primary ...

Alliance News 14 October, 2021 | 8:29AM
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(Alliance News) - Legal & General Group PLC on Thursday set out targets for its primary alternative asset business, Legal & General Capital.

Ahead of a capital markets day focused on LGC, L&G highlighted a goal for the business of generating up to GBP600 million in profit from alternative assets by 2025.

LGC said the event will take a look into the business and outline its goals for the future. Key ambitions include growing its alternative asset portfolio to around GBP5 billion by 2025 and generating returns on the portfolio of around 10% to 12%, with operating profit of GBP500 million to GBP600 million from alternatives by 2025.

LGC as a whole is targeting operating profit of GBP600 million to GBP700 million by 2025.

In 2020, the unit recorded operating profit of GBP275 million and ended the year with a direct investment portfolio of GBP3.14 billion - with more than half made up of residential property assets.

"By investing in and developing high-quality alternative assets, LGC generates attractive risk-adjusted returns for shareholders, structures attractive long-duration investments for LGR and, increasingly, provides compelling alternative investment opportunities for third party investors," said LGC Chief Executive Laura Mason.

L&G pointed out the alternative investor focuses on four sectors: housing, SME finance, specialist commercial real estate, and clean energy.

Shares in Legal & General were 0.3% higher in London on Thursday morning at 282.50 pence each.

By Paul McGowan; paulmcgowan@alliancenews.com

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Legal & General Group PLC 281.40 GBX -3.60 -

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