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Lloyds and Legal & General fund finance partnership passes £1.5 billion

Lloyds
Published on: 26 June 2026
1 min read
 
  • Co-investment partnership with L&G has surpassed £1.5bn of participations since launching in December 2022.
  • Model pairs bank-led origination with long-term institutional capital to scale financing for private markets.
  • Reflects growing demand from fund managers for short-duration liquidity as private markets expand.


Lloyds is expanding the role of institutional capital in fund finance, with its co-investment partnership with L&G (Legal & General) surpassing £1.5bn of participations since launching in December 2022. The milestone reflects sustained demand for financing solutions across private markets.

The partnership combines Lloyds’ origination and structuring capabilities with institutional capital from L&G, enabling financing to be deployed at scale across a diversified range of fund facilities. By partnering with global banks like Lloyds, L&G secures access to a strong pipeline of high-quality, short-dated investments, supporting the delivery of capital-efficient, investment-grade opportunities for clients – including insurers, pension schemes and other institutional investors – while continuing to scale its £2bn short-term alternative finance strategy.

Demand for these facilities has increased as private markets have expanded, with fund managers using liquidity to bridge capital calls and manage cash flows between fundraising cycles. These short-duration financing solutions play a key role across the fund lifecycle, helping sponsors manage liquidity efficiently while maintaining investment momentum.

The £1.5bn milestone demonstrates how bank-led origination and institutional capital can work together, to expand access to financing, a model expected to play an increasingly important role as banks and institutional investors continue to collaborate across private markets.

Surpassing £1.5bn with L&G reflects both the strength of this partnership and the depth of our experience supporting Financial Sponsor clients with innovative financing solutions. We have worked closely with clients in this market for many years, evolving our financing solutions as their needs change and supporting them by combining our origination capabilities with institutional capital to deliver funding at scale. This partnership is a strong example of our solutions-led approach and our focus on building long-term, sustainable relationships that support clients across market cycles.

Jill Wilson Managing Director, Financial Sponsors, Lloyds

This milestone underlines the growing importance of partnerships between banks and institutional investors in supporting the evolution of private markets. By working with Lloyds, we are able to access high-quality, short-duration assets for our clients, where we are seeing particularly strong demand from insurers for low-duration investments with robust credit quality. Structures like this are an important part of how we scale our short-term alternative finance strategy while supporting the financing needs of private market sponsors.

Matthew Taylor Head of Alternative Debt, Asset Management, L&G

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