Financial Management and Investment Strategies Oversight
Revamped Article:
Global Expansion: L&G Asset Management Aims High
Eric Adler, big honcho at L&G Asset Management, sets his sights on international growth
Jane Doe Tuesday, June 17, 2025 at 07:51 am
L&G Asset Management is aiming to ramp up its global presence, with a focus on private markets and tapping into high-growth client channels abroad.
Goal: Dominating the Global Stage
According to Adler, there's a massive opportunity waiting to be seized in international markets. With a strategy built on scaling capabilities, diversification, strategic partnerships, and operational discipline, L&G is aiming to become a key player in the global asset management scene.
Aiming High: Private Markets Domination
L&G is aggressively growing its private markets assets under management (AUM), targeting a figure of over £85 billion by 2028. This push includes expanding into real estate, private credit, and other private markets in both the UK and abroad. The firm is also striving to increase its share of global private market allocations, recognizing an ever-increasing appetite among institutions for alternative asset classes.
Revenue Shift: Embracing Growth Channels
L&G plans to generate more than half of its new revenues from high-margin, high-growth client channels like Workplace DC and annuity businesses. These channels are being developed not just domestically, but overseas to seize new growth opportunities. L&G also aims to improve its average fee margin to double digits by 2028, in part by capturing more value in international markets with potentially more favorable fee structures.
Partnering for Success: Building International Distribution
L&G is banking on its distribution capabilities to ensure its investment solutions reach international institutional investors and pension funds. By fostering relationships with local partners, leveraging its global brand, and penetrating new markets, L&G is aiming to capture untapped growth opportunities. The firm is also branching out into new investment sectors, as evidenced by its £250 million loan to Magnavale Cold Storage for European logistics diversification.
Sticking to the Plan: Operational Efficiency
L&G is keeping a tight rein on costs as it expands, aiming for a cost-to-income ratio of below 70% by 2028. This cost discipline is crucial to supporting profitable international growth. L&G is also making strategic leadership appointments, such as appointing Dan Batterton as Head of Housing (UK), to scale investment platforms that can be replicated or adapted internationally.
In a Nutshell
L&G's strategy for international growth in asset management revolves around capitalizing on its private markets strength, shifting into high-growth client channels, building robust international partnerships, and embracing operational efficiency. By capturing untapped potential in overseas markets, particularly among institutional investors seeking diversified investment solutions, L&G is positioning itself for amajor presence on the global stage.
| Strategic Element | Description | International Focus ||---------------------|-------------------------------------------------------------------------|-------------------------------------|| Private Markets Expansion | Boost AUM to £85bn+ by 2028, from £57bn in 2024 | New geographies, partnerships || High-Growth Client Channels | Workplace DC and annuity businesses driving new revenues | Targeting overseas markets || Revenue Margin Improvement | Aim for double-digit fee margin by 2028 | Favorable overseas fee models || International Distribution | Leverage partnerships and global brand for distribution | Penetrate untapped markets || Operational Discipline | Cost income ratio below 70% by 2028 | Supports international growth || Strategic Hiring | Key appointments to scale investment platforms | Platform adaptability |
Bottom Line
L&G's international growth strategy in asset management centers on capitalizing on its private markets expertise, branching out into high-growth client channels, and building robust international partnerships. The aim is to tap into the potential in overseas markets, particularly among institutional investors seeking diversified and alternative investment solutions.
- In order to dominate the global stage, L&G Asset Management is focusing on private markets investments, aiming to significantly increase its assets under management (AUM) and share of global private market allocations.
- As part of its strategy for growth, L&G is looking to generate more than half of its new revenues from high-margin, high-growth client channels like Workplace DC and annuity businesses, targeting these opportunities both domestically and overseas.
