L&G combines LGIM and LGC divisions

Legal & General has combined its investment management and capital arms, and has kicked off the search for a chief executive for the merged division. Michelle Scrimgeour will step down from her role as LGIM CEO. She will continue as CEO of the legal entity, LGIM Limited, until the appointment is made. Scrimgeour will lead the transition and establishment of the new division with LGC boss Laura Mason, who has been appointed chief executive of private markets. Both will report to the group CEO. The asset manager has set out its intention to “significantly” expand its capabilities and client offering across real estate, private credit and infrastructure, with initiatives including fund launches. It is aiming to generate operating profit of £500m-£600m by 2028, as well as achieve cumulative annualised net new revenue of £100m-£150m and grow its private markets platform to £85bn of assets under management. The group will also seek to maximise the value of non-strategic assets through a new corporate investments unit. Legal & General Group chief executive António Simões, who took over the role from Sir Nigel Wilson in January, said the business was “rigorously reviewed” over the past five months. He said: “L&G is in prime position to respond to and benefit from major structural and societal changes. Changing demographics, climate transition, economic uncertainty and technology are driving demand for trusted, experienced investors that can manage risk through the cycle, originate productive assets, and deliver returns for savers.”