Lloyds Bank and Legal & General (L&G) have announced that their fund finance partnership has surpassed the £1.5 billion mark, a major milestone that underscores the growing collaboration between banks and institutional investors in private markets.
Partnership Details and Scale
The partnership combines Lloyds' origination and structuring capabilities with institutional capital from L&G, enabling financing to be deployed at scale across a diversified range of fund facilities. By partnering with global banks like Lloyds, L&G secures access to a strong pipeline of high-quality, short-dated investments, supporting the delivery of capital-efficient, investment-grade opportunities for clients – including insurers, pension schemes and other institutional investors – while continuing to scale its £2bn short-term alternative finance strategy.
Executive Comments
Jill Wilson, Managing Director, Financial Sponsors at Lloyds, said: “Surpassing £1.5bn with L&G reflects both the strength of this partnership and the depth of our experience supporting Financial Sponsor clients with innovative financing solutions. We have worked closely with clients in this market for many years, evolving our financing solutions as their needs change and supporting them by combining our origination capabilities with institutional capital to deliver funding at scale. This partnership is a strong example of our solutions-led approach and our focus on building long-term, sustainable relationships that support clients across market cycles.”
Market Impact
The £1.5bn milestone demonstrates how bank-led origination and institutional capital can work together to expand access to financing, a model expected to play an increasingly important role as banks and institutional investors continue to collaborate across private markets.
Institutional Investor Demand
Matthew Taylor, Head of Alternative Debt, Asset Management at L&G, said: “This milestone underlines the growing importance of partnerships between banks and institutional investors in supporting the evolution of private markets. By working with Lloyds, we are able to access high-quality, short-duration assets for our clients, where we are seeing particularly 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.”
