UK $1.4 Trillion Largest Asset Manager Legal & General Investment Management (LGIM) Buys 75% of Morgan Stanley Spin-off $3.5 Billion Global Real Estate Private Equity Firm Proprium Capital Partners, Targets to Grow Private Markets Platform to $110 Billion (£85 Billion) AUM by 2028, Spin-off from Morgan Stanley Real Estate Special Situations Team in 2013, Proprium Capital Partners Invests in Residential, Student Accommodation, Hospitality & Logistics Sectors
22nd May 2025 | Hong Kong
United Kingdom (UK) largest asset manager Legal & General Investment Management (LGIM) with $1.4 trillion AUM has announced to buy 75% of Morgan Stanley spin-off global real estate private equity firm Proprium Capital Partners ($3.5 billion AUM), and targeting to grow Legal & General private markets platform to $110 billion (£85 billion) AUM by 2028. Proprium Capital Partners was spin-off from Morgan Stanley Real Estate Special Situations team in 2013. Proprium Capital Partners invests in residential, student accommodation, hospitality & logistics sectors. Announcement (19/5/25): “L&G announces an agreement to acquire a 75% stake in the global real estate investor, Proprium, in a move which brings together the complementary capabilities of the two businesses, and accelerates L&G’s private markets growth ambitions, broadening the real estate capabilities of the firm and unlocking new geographies. L&G is one of Europe’s largest asset managers and a leading real estate owner and manager in the UK, with a growing platform in the US. Asset Management is the cornerstone of L&G’s growth strategy and building scale in private markets globally is key to those ambitions. With a target to grow its Private Markets platform to £85bn AUM by 2028, L&G is focused on maximising opportunities within real estate, infrastructure, private credit, and venture capital, while strategically expanding into new global markets. Founded in 2013, Proprium is a spin-out of the Morgan Stanley Real Estate Special Situations team, which focuses on investing in real estate operating companies with scalable investment themes and experienced management teams. Proprium’s strategy of platform investing seeks to deliver private equity returns in the real estate industry. Proprium is active across residential, student accommodation, hospitality, and logistics sectors, with past investments including stakes in Motel One. Proprium’s current investments include a&o hostels in Germany, Admiral Taverns in the UK, and Avid in Australia. In the last 18 months, Proprium has sold more than $1.8 bn of assets; acquired $1.6 bn of assets, including the recently announced public to private of AVJennings; and has distributed more than $800mn to investors and secured over $600 mn in equity commitments. The US, continental Europe and select APAC markets represent key strategic growth areas for L&G’s Private Markets platform. These regions offer diversification* for clients as well as expanding the investment opportunities in subsectors benefiting from structural trends such as demographic change and deglobalisation. For clients seeking capital growth in an environment of elevated interest rates and heightened structural risks, value-add strategies in these sectors – focused on active management and operational excellence – can sit in a compelling position within the risk-return spectrum. With c.60% of Proprium’s portfolio in Europe and a market presence in APAC, L&G will benefit from its track record to accelerate its ambitions in these regions … … L&G’s current real estate portfolio amounts to c.£22bn AUM, ranging from large scale regeneration projects, industrial property, and urban logistics to a diverse residential platform of affordable housing, build to rent, and student accommodation. In October last year, L&G announced its equity stake in US based real estate investor Taurus, targeting high growth real estate sectors in the US and deepening L&G’s Private Market capabilities in the region. As part of the acquisition, Proprium’s management team will continue to operate independently from an operational, day-to-day perspective, maintaining its current leadership structure, teams and investment process, all of which will be enhanced by working as part of the wider L&G Private Markets platform.”
“ UK $1.4 Trillion Largest Asset Manager Legal & General Investment Management (LGIM) Buys 75% of Morgan Stanley Spin-off $3.5 Billion Global Real Estate Private Equity Firm Proprium Capital Partners, Targets to Grow Private Markets Platform to $110 Billion (£85 Billion) AUM by 2028, Spin-off from Morgan Stanley Real Estate Special Situations Team in 2013, Proprium Capital Partners Invests in Residential, Student Accommodation, Hospitality & Logistics Sectors “
Bill Hughes, Global Head of Private Markets, L&G: “In the last 12 months we have significantly accelerated the growth of our Private Markets platform, laying the foundations for achieving our ambitious target of £85bn by 2028. This growth trajectory is fuelled by our commitment to deliver exceptional investment outcomes that attract third party capital, and today’s announcement further demonstrates our strategic direction and plans in action.
Tim Morris and Philipp Westermann, Co-Managing Partners of Proprium Capital Partners: “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. Benefitting from Proprium’s expertise and entrepreneurial approach, combined with L&G’s scale and balance sheet capital to catalyse opportunities, we believe the partnership will unlock substantial growth in new markets and drive significant value for our clients … .. Today’s announcement is testament to the strength of Proprium’s track record in delivering strong, risk-adjusted returns for investors. On behalf of the Proprium team, we are incredibly excited about the partnership with L&G, their financial backing and growth ambitions. Their investment opens new doors to international markets as L&G builds out its global real estate business, representing a significant milestone in the evolution of our platform at a time of immense opportunity.”
Legal & General – Legal & General is a leading UK financial services group and major global investor. Our three divisions enable us to carefully invest capital over the long term in a responsible way that delivers returns to shareholders while doing good. Along with growing our pension risk transfer business, our strategy focuses on asset management as the cornerstone of our business, including by opening up private markets to more of our clients. Meanwhile, our retail business is focused on building lifelong relationships with customers as they save for retirement and protect themselves and their families. What unites all three parts of our business is summed up in our purpose statement which sets out what we do, why we do it, and our belief in the power of capital. It builds on what’s inspired us since our beginnings in 1836, and challenges us to do more, with greater urgency, in more places, for more people and in more ways, for the long term.
Proprium Capital Partners – Proprium Capital Partners is a privately-held real estate focused principal investing firm, advising funds which have combined net equity under management of over $3 Billion. Proprium and its affiliates manage funds on behalf of institutional investors across the globe, including government and private sector pension and retirement funds, banks, family offices and sovereign wealth funds. Proprium’s investment philosophy is to partner with leading local real estate companies seeking to create long-term, sustainable growth. With a global presence spanning six offices across the US, Europe, and the Asia Pacific region, Proprium is well-positioned to navigate the complexities of the global real estate market.
UK $1.4 Trillion Largest Asset Manager Legal & General Investment Management (LGIM) Buys 75% of Morgan Stanley Spin-off $3.5 Billion Global Real Estate Private Equity Firm Proprium Capital Partners, Targets to Grow Private Markets Platform to $110 Billion (£85 Billion) AUM by 2028, Spin-off from Morgan Stanley Real Estate Special Situations Team in 2013, Proprium Capital Partners Invests in Residential, Student Accommodation, Hospitality & Logistics Sectors
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