Blackstone and L&G Form $20 Billion Private Credit Partnership

Blackstone and Legal & General (L&G) are partnering in a private credit tie-up worth up to $20 billion. The collaboration will involve Blackstone managing a fund of up to $10 billion for L&G, with the option to increase the size to $20 billion. The deal aims to bolster L&G's private credit business and expand Blackstone's presence in the UK.

Blackstone Inc. and Legal & General Group Plc have announced a significant partnership in the private credit market, with an initial fund size of up to $10 billion, potentially expanding to $20 billion over the next five years [1]. This collaboration will see Blackstone originate investment-grade private credit deals for L&G’s annuities business, while also exploring public-private hybrid credit solutions alongside L&G’s asset management unit.

The partnership is part of a broader trend where alternative asset managers are increasingly forging closer ties with the insurance industry, which is seen as a key source of growth for the emerging private investment-grade market [1]. According to Moody’s Ratings estimates, US life insurers allocated up to a third of their $6 trillion in cash and invested assets to private credit investments by the end of 2024, a figure that is rapidly rising as money managers take on more business from traditional banks [1].

Unlike rivals Apollo Global Management Inc. and KKR & Co., Blackstone has chosen to partner with insurers rather than acquire them. This strategy aligns with Blackstone’s broader approach to expanding its presence in the UK, where L&G is a significant player. L&G’s asset management unit, LGIM, oversees about £1.1 trillion ($1.5 trillion) in assets, with a growing focus on private markets. The company aims to manage £85 billion in private assets by 2028 [1].

This partnership marks a strategic move for both firms. For Blackstone, it provides an opportunity to grow its private credit business and expand its footprint in the UK. For L&G, it offers a way to bolster its private credit capabilities and potentially attract more investment. The collaboration is expected to bring significant benefits to both parties, leveraging their respective strengths in the private credit market.

References:
[1] https://www.bloomberg.com/news/articles/2025-07-10/blackstone-l-g-strike-up-to-20-billion-private-credit-tie-up