Blackstone has entered into a long-term strategic partnership with UK-based Legal & General (L&G) to accelerate growth across annuities and asset management through private credit, marking another milestone in the expansion of institutional-grade credit platforms.

As part of the agreement, L&G will channel up to 10% of its future annuities new business flows into investment-grade private credit sourced via Blackstone’s origination platform, predominantly focused on the US market. The move is designed to bolster L&G’s asset pipeline and enhance returns in its $122.5bn annuities book.

The alliance combines Blackstone’s $465bn credit platform with L&G’s £1.1tn ($1.4tn) in assets under management. It will also enable L&G to develop hybrid credit solutions that merge Blackstone’s private credit capabilities with its own active fixed income expertise, targeting expansion across global wealth and wholesale channels.

“Today’s announcement marks another important step in delivering our strategy for focused, sustainable growth,” said Antonio Simões, Group CEO of L&G. “Our partnership with Blackstone will further cement our market-leading position in pension risk transfer, and enable us to address growing demand for public-private hybrid investment products.”

Jon Gray, President and COO of Blackstone, added: “We’re thrilled to partner with L&G, a world-class firm with strong performance that we have long admired. Together, our unmatched scale and expertise should drive innovative solutions in the private credit market.”

The deal also reinforces Blackstone’s growing presence in insurance, building on its $237bn in third-party insurance assets under management across private and liquid credit strategies. For L&G, the collaboration is expected to support both liability matching in annuities and innovation in asset management, especially in institutional and wholesale segments.

The announcement reflects the increasing demand among insurers for diversified, private credit exposure in the face of persistent yield compression and evolving regulatory frameworks.

Eric Adler, CEO of L&G Asset Management, highlighted the opportunity: “This partnership brings together the combined strengths of L&G and Blackstone’s respective credit businesses to offer new, innovative investment solutions and extend our international reach.”

Philip Sherrill, Global Head of Insurance at Blackstone, concluded: “This partnership shows the best of what Blackstone can offer to our insurance company clients.”

This latest deal signals growing momentum behind cross-border insurance and asset management partnerships, with private credit emerging as the critical enabler of future growth.

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