L&G has bolstered its private markets platform with an equity stake in Taurus and commits up to $200m to high growth real estate sectors in the US.
This partnership reportedly enhances L&G’s Private Markets capabilities in the region, while also addressing investor demand for real estate equity exposure.
At its Capital Markets Event in June, L&G stated that it intended to expand its global Private Markets platform to £85bn ($112bn) AUM by 2028.
Legal & General (‘L&G’) confirmed recently its strategic investment in Boston-based, global real estate private equity firm, Taurus Investment Holdings, LLC, alongside an initial commitment of up to $200m in seed capital to multifamily1, a key growth market that “continues to be one of the strongest performing real estate sectors in the US.”
Taurus has expertise in the acquisition, development, financing, leasing, and selling of multifamily and industrial real estate assets “across the US, and select global markets including Germany and the UK, totaling more than $11 billion in value to date.”
Taurus reportedly has a track-record of implementing value-add investment strategies, including decarbonization solutions such as “deep energy retrofit and geothermal networks.”
Supported by structural increases in demand and robust historical performance, multifamily and industrial have grown to “account for 63% of institutional real estate portfolios, up from 34% in 2000, and are the two strongest performing core sectors in the US over the last 20-years.”
Both sectors are underpinned by “compelling” macro trends, which should contribute to long-term rental growth prospects and “potential” strong relative performance into the future.
Representing a key market for the Group, L&G launched its US asset management business back in 2006 and has built a track-record with $231.9bn of assets under management across public as well as private markets.
Its team of 275 support institutional clients across a range of strategies including private credit, real estate, and infrastructure.
This partnership with Taurus aims to accelerate L&G’s ambitions in the region, adding real estate equity capability in multifamily and industrial, and enhances its established “development proposition in US real estate via its joint venture with Ancora – a US real estate developer committed to driving science and technology growth.”
With access to Taurus’ team and track record, L&G stands ready to meet significant investor demand for US real estate equity exposure “both for its own balance sheet and third-party clients.”
This transaction delivers on L&G’s strategic vision to “build out a full-scale US real estate investment management capability.”