Legal & General’s Private Markets Access Fund (PMAF) reached £1.3bn in assets under management by the end of June, one year after its launch in 2024.
The fund offers defined contribution (DC) scheme members diversified exposure to private markets. It invests across real estate, infrastructure, private credit and private equity, including assets such as affordable housing, clean energy and natural resources.
L&G launched the fund alongside a new target-date fund default range, the L&G Lifetime Advantage Funds, which makes use of PMAF to access private markets. Since its launch, L&G Lifetime Advantage range has seen inflows of more than £11bn from DC clients, including contributions from the firm’s own employee pension plan.
L&G is a founder signatory of the Mansion House Accord, aiming for at least 10% of DC default fund assets to be allocated to private markets by 2030, with a minimum 5% directed into UK-based private market investments.
Responding to pension scheme demand, L&G has also opened PMAF to defined benefit (DB) clients. The offering features a weekly-dealing structure designed to help manage pension scheme liquidity and allow prudent extraction of surplus capital under the new Pensions Bill.
Eric Adler, chief executive of asset management at L&G, said: “We are pleased to have been an early adopter in designing a solution that enables default schemes with flexible liquidity requirements to access private markets opportunities.
“As private markets continue to open up to new DC and DB members, we expect a continued focus on private markets strategies that can offer income and growth together with positive societal benefits.”
L&G has expanded its private market platform and client offering in recent years, including launches of a £500m affordable housing fund, a €600m clean power fund and a $235m nature and social outcomes strategy.