Legal & General Investment Management Real Assets (LGIMRA) is a division of Legal & General Investment Management (LGIM), one of Europe’s largest institutional asset managers and a major global investor. LGIMRA has assets under management of €46 billion* and is one of the largest private markets investment managers in the UK. LGIMRA actively invests in and manages assets across commercial, operational and residential property sectors, as well as infrastructure, real estate, corporate and alternative debt.
- LGIM has a strong track record of investing in the infrastructure debt market, with more than €6.5bn* in AUM.
- LGIM have been heavily active in the renewables debt sector including the financing of multiple solar deals and a landmark offshore wind farm (the world’s largest).
- Building on this, LGIM has confirmed their intention to partner with NTR, a leading renewable energy specialist to invest in renewable energy infrastructure equity assets.
- LGIM financed the construction and operation of six new schools in Maryland, believed to be one of the first public-private partnership (PPP) involving a public school system in the US. The new schools will provide a high-quality, modern learning environment for approximately 8,000 students.
Our vision and beliefs
L&G’s overarching and driving principle is one of inclusive capitalism, that is, the ability to generate a positive return and a positive outcome for society. Infrastructure investing is fundamental to this. We believe the country needs better public services – schools, transport, social and elderly care, as well as urgent action to reduce our dependence on fossil fuels.
LGIM manages a diversified range of infrastructure debt investments, covering transport, energy, telecommunications, social and utilities sectors as well as different financing structures. We operate a buy-and-hold philosophy. Our central belief is that value is not simply measured in terms of upfront premium. Investment value can only be truly measured over time. Diversification, robust documentation and upfront premium are important to the value proposition.
We have been managing private credit mandates since 2012, and the growth in our business since then is testament to the confidence our clients have placed in us to deliver risk-adjusted solutions. We believe that a proven and repeatable process with the right level of governance will continue to hold us in good stead as we grow.
Investment process and research
Origination is led by the Investment Teams, sourcing deals through various means including (but not limited to) sponsors, borrowers, regulators, banks and fostered industry relationships. They have the ability to access markets directly and structure bilaterally to achieve value through price, structure and scale. This is aided by our alignment with the wider Legal & General group.
We operate a highly selective investment approach with a relentless focus on credit quality and structural protections underpinned by our dual track investment process. This process involves rigorous due diligence by the deal sourcing team on the one track and a simultaneously but independent credit ratings process on the other. Both teams present their due diligence at separate investment and credit committees.
We are committed to integrating ESG into our investment process to ensure the assets we finance are of the highest possible quality. We integrate ESG considerations into all our investment decision-making by identifying and managing the issues that are, in our view, the most material to our assets across the investment lifecycle.
*Source: LGIM Real Assets. AUM data estimates as at 31 December 2021 (GAV, including crossholdings).
For professional clients only. Past performance is not a guide to the future. The value of an investment and any income taken from it is not guaranteed and can go down as well as up, you may not get back the amount you originally invested. The Information in this document (a) is for information purposes only and we are not soliciting any action based on it, and (b) is not a recommendation to buy or sell securities or pursue a particular investment strategy; and (c) is not investment, legal, regulatory or tax advice. Legal & General Investment Management Limited. Registered in England and Wales No. 02091894. Registered Office: One Coleman Street, London, EC2R 5AA. Authorised and regulated by the Financial Conduct Authority, No. 119272.