Legal & General’s (L&G) asset management arm has picked IFM Investors as infrastructure manager for its defined contribution (DC) focused private markets access fund (PMAF).
In July, L&G announced the launch of PMAF, offering its 5.3m DC members the opportunity to access the benefits of diversified private markets exposure.
The fund offers DC investors a single point of access to a diversified portfolio of private market assets, seeking to capture the illiquidity premium in asset classes including private equity, real estate, private credit and infrastructure.
L&G said the partnership with Australian pension fund-backed IFM will help “identify opportunities for driving significant investment in the UK, with each partner committed to increasing investment in local assets”.
“One of the focal points of the partnership’s PMAF strategy will be energy transition, decarbonisation and the enabling of new renewable energy sources which will play an important role in the move to net zero status,” it added.
Armit Bhambra, head of EMEA client solutions at IFM Investors, said: “In Australia, where IFM is headquartered, we have seen how investing in private markets and infrastructure can deliver long-term, risk adjusted returns for working people’s retirement savings – we believe there is a significant opportunity for DC funds in the UK to take advantage of this approach in a way that can help them deliver for their members and further their sustainability objectives.
“We believe this partnership will open the door to new opportunities for IFM Investors and L&G in areas such as the energy transition and infrastructure in the UK, with a focus on creating long-term value for our clients, and most importantly the DC members that invest with L&G.”
Jesal Mistry, head of DC investments at Legal & General said: “Our ambition with the L&G Private Markets Access Fund is to give DC savers exposure to a diversified range of exciting private markets opportunities with the potential to boost their long-term retirement outcomes.
“Infrastructure has a critical role to play as part of this asset mix, so we’re delighted to be working with IFM as a partner on the fund.”
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