Legal & General Capital (LGC) is the early-stage investment arm of Legal & General Group. Investing from Legal & General’s principal balance sheet, LGC’s purpose is to generate long-term value by injecting new capital into key sectors where there has been a shortage of investment and innovation: Housing, Urban Regeneration, Clean Energy and SME Finance.
LGC invests the Group’s £7.3bn of shareholder funds to deliver attractive risk-adjusted returns by committing early-stage capital into key sectors where there has been a shortage of investment and innovation. LGC also invests the balance of the funds in traded assets which, in turn, supports the Group’s solvency margin.
LGC not only delivers value to shareholders but also creates assets and business platforms which benefit other parts of the wider Legal & General business. This includes Legal & General Retirement (LGR) which manages annuities so looks to match these long-term pension fund commitments by investing in assets which create reliable income. LGC has already created property assets which fit this criteria and works with LGR on identifying and creating future opportunities.
Within housing and urban regeneration, LGC also works closely with Legal & General’s investment management business (LGIM), namely its dedicated Real Assets arm formed of experts in property and infrastructure. LGC is able to act as a source of early-stage capital to kick-start projects as well as dedicated funds and offers LGIM's extensive client base access to a wider range of investment opportunities.
LGC’s investment approach helps to distinguish Legal & General and means we can provide deeper levels of commitment to our partners. At a local and asset level this means Legal & General can be involved with investments and businesses for the long-term, from our early-stage capital investment through to long-term partnerships. This means whether we are working with a local authority or investing in a start-up business, partners have the benefit of knowing we can offer expert support and investment for the duration.
LGC has identified key areas which have historically fallen short in terms of investment and innovation: Housing, Urban Regeneration, Clean Energy and SME Finance. Because LGC is able to take a long-term view, we can invest at an early-stage to create assets where we know there will be long-term demand.