LGV Capital to wind down portfolio

Greg Gille
@unquotenews
11 March 2013

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Insurer Legal & General has confirmed its private equity arm LGV Capital will stop making new investments, and will instead focus on managing and eventually divesting its existing portfolio.

Legal & General took the decision following a strategic review of its business and stated it does not see private equity as a core business within its portfolio. The insurer will instead focus on the annuity, protection, savings and international investment management markets.

A spokesperson for Legal & General stated that the decision had not been the result of regulatory constraints, which have seen other insurers looking to move away from private equity.

LGV was founded in 1986. The firm has invested more than £1.6bn in 90 companies, and its last two realised funds generated returns in excess of 3x. Its current portfolio includes businesses such as Amber Taverns, The Liberation Group and Novus Leisure. LGV most recently completed the secondary buyout of energy consultancy Air Energi Group from Palatine Private Equity in October last year.

Legal & General confirmed that the day-to-day management of LGV's current investments would not change, and that funding remained available to support these existing portfolio companies.

Legal & General declined to comment on whether LGV's management team had any plans to lead a spinout of the business and raise further funds independently.