Simpson Thacher Advises Blackstone on its Strategic Partnership with Legal & General
Simpson Thacher advised Blackstone on its long-term strategic partnership with Legal & General (L&G). The partnership combines the strength of L&G and Blackstone’s respective credit platforms to enhance L&G’s competitive advantage in annuities and bolster its asset management proposition in key geographies and channels.
L&G’s annuities business will leverage Blackstone’s private credit origination platform to access a pipeline of diversified investment-grade assets, predominantly from the U.S. This partnership will complement L&G’s existing capabilities to gain competitive advantage, enhanced returns and support its growth ambitions. L&G will invest up to 10% of anticipated annuities new business flows. This will add to the $237 billion in third-party insurance assets Blackstone manages across investment-grade private credit, liquid credit and other strategies.
Additionally, L&G’s asset management business will develop public/private hybrid credit solutions that combine Blackstone’s leading private credit platform with L&G’s best-in-class active fixed income capabilities. This will accelerate L&G’s ambitions to expand into highly attractive global wealth and wholesale channels.
The Simpson Thacher team includes Owen Lysak, Chris Scavone, Richard Munro and Yuru (Rita) Fu (Funds); Elizabeth Cooper and Drew Harmon (M&A); and Nancy Mehlman (Tax).