UK retail and commercial financial services provider Lloyds and global asset manager Legal & General (L&G) have crossed £1.5bn in participations through their fund finance co-investment partnership.
Fund finance facilities are typically used throughout a fund’s lifecycle to help managers manage liquidity while maintaining investment activity.
The partnership, launched in December 2022, combines Lloyds’ loan origination and structuring capabilities with long-term institutional capital from L&G to provide financing for a range of private market fund facilities.
Under the arrangement, L&G invests alongside Lloyds in fund finance transactions, giving the insurer access to a pipeline of short-duration, investment-grade assets while supporting the growth of its £2bn short-term alternative finance strategy.
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Jill Wilson, MD, financial sponsors, Lloyds, said: “We have evolved our financing solutions as clients’ needs changed and supported them by combining our origination capabilities with institutional capital to deliver funding at scale. This partnership is an example of our solutions-led approach and our focus on building long-term, sustainable relationships that support clients across market cycles.”
Matthew Taylor, head of alternative debt, Asset Management, L&G, said: “ By working with Lloyds, we can access high-quality, short-duration assets for our clients, where we are seeing strong demand from insurers for low-duration investments with robust credit quality. Structures like this are an important part of how we scale our short-term alternative finance strategy while supporting the financing needs of private market sponsors.”
