Investec and L&G surpass €5bn milestone

As private markets continue to expand, demand for short-duration, investment-grade financing has grown rapidly. These facilities bridge capital calls, manage cash flow, and keep investments running smoothly throughout the fund cycle. Through this collaboration, L&G and Investec have helped broaden access to flexible term loan solutions for private market sponsors, creating one of the most established and scalable institutional funding platforms in the market.

By partnering with Investec and other global banks, L&G has secured a strong pipeline of high-quality, short-dated investments, scaling its short-term alternative finance strategy to £2 billion in assets under management. This strategy, part of L&G’s £71 billion private markets platform , focuses on sub-1-year private credit assets and aims to provide institutional investors – such as insurers, pension funds, endowments, and family offices – investment-grade alternatives to cash and other short-dated instruments. The portfolio includes financing options such as capital call facilities, supply chain finance, trade receivables, and asset-backed loans, targeting steady returns with low risk.

Matthew Taylor, Head of Alternative Debt, Asset Management, L&G: “Surpassing £2 billion in AUM for our short-term alternative finance strategy reflects the growing appetite among institutional investors for innovative private credit solutions. This demand has been especially strong from insurers, who are seeking capital-efficient, short-duration assets with robust credit quality. Our partnership with Investec has been instrumental in meeting this need – providing a reliable flow of high-quality assets that help us deliver enhanced returns with low duration and volatility across our broad client base.”

Investec was among the first banks to pioneer a term-loan structure in capital call facilities, helping unlock institutional liquidity in a market previously dominated by revolving facilities. This innovation has since been adopted by more sponsors as an efficient financing solution across a fund’s lifecycle, underscoring Investec’s role in shaping a more sophisticated and effective fund finance landscape.