L&G takes 75% stake in Proprium to drive private markets growth across Europe and APAC
Legal & General (L&G) has acquired a 75% stake in Proprium Capital Partners, a real estate private equity firm managing $3.5bn in assets. The deal strengthens L&G’s private markets platform.
As part of the transaction, L&G will commit up to $300m to back Proprium’s future fund strategies.
The move aligns with L&G’s ambition to grow its private markets business to £85bn AUM by 2028. The firm is focusing on real estate, infrastructure, private credit, and venture capital.
Proprium launched in 2013 as a spin-out from Morgan Stanley’s Real Estate Special Situations team. The firm focuses on platform investing across sectors like residential, student housing, hospitality, and logistics. Its portfolio includes a&o Hostels in Germany, Admiral Taverns in the UK, and AVJennings in Australia.
Over the past 18 months, Proprium has sold $1.8bn in assets, acquired $1.6bn, and distributed over $800m to investors. It also secured more than $600m in equity commitments during the same period.
L&G, a leading UK investor, continues to expand its private markets footprint. Last year, it acquired an equity stake in US-based real estate investor Taurus. The Proprium deal now gives L&G stronger access to high-growth markets, especially in Europe and APAC, where 60% of Proprium’s portfolio is based.
Eric Adler, CEO of Asset Management at L&G, said: “Recognising that international scale in private markets is key to delivering against L&G’s growth strategy, this strategic investment in Proprium will expand our geographical footprint, deepen our capabilities, broaden our investment strategies, and diversify our product offering.”
Bill Hughes, Global Head of Private Markets at L&G, added: “The partnership with Proprium will strengthen L&G’s investment capabilities and broaden our product offering, allowing us to bring a select range of strategies that aim to deliver the higher returns that many global investors are seeking.”
Proprium’s co-managing partners, Tim Morris and Philipp Westermann, welcomed the deal. “On behalf of the Proprium team, we are incredibly excited about the partnership with L&G, their financial backing and growth ambitions,” they said. “Their investment opens new doors to international markets as L&G builds out its global real estate business.”
The deal is expected to close by Q4 2025, subject to regulatory approval. Proprium will continue to operate independently, maintaining its leadership team, structure, and investment approach.