Clifford Chance guides L&G on $20bn Blackstone private credit play

Clifford Chance has advised Legal & General on its landmark private credit-focused partnership with private capital giant Blackstone - a deal aimed at ramping up L&G’s access to private credit opportunities in the US.

Under the long-term alliance, L&G will allocate up to 10% of its new annuities business into investment-grade private credit deals sourced via Blackstone’s origination platform, primarily focused on the US. The two firms aim to grow the programme to as much as $20 billion over the next five years, according to reports.

Bigger picture

The move reflects a growing trend among major insurers and financial institutions seeking access to private credit markets - an increasingly attractive asset class as money managers look to diversify their portfolios beyond public markets. With over £1.1 trillion in assets under management, L&G is one of the largest players to strike such a partnership.

The partnership follows UBS agreeing a strategic partnership with General Atlantic in May which will see the Swiss bank source loans for General Atlantic investors. Citi agreed a $25 billion private credit programme with Apollo last year, while BlackRock opted to buy private credit-focused investment firm HPS Investment Partners in a $12 billion deal, also last year.

Advising

Clifford Chance advised L&G, fielding a team led by London funds partner Gerard Saviola and counsel Benjamin Harding. They were supported by senior associate Sarah Burns. Regulatory partner Imogen Ainsworth and UK head of tax Richard Kalaher were also involved.