News Column

L&G enters business loans market

July 18, 2014

? Legal & General plans to lend at least 250m (198m) to UK and European small businesses, competing with banks in the market for the first time. It has bought a 40 per cent stake in direct lending platform Pemberton. The platform targets firms with a turnover of between 100m and 1bn per year, and it takes the decisions on borrowers' creditworthiness. "The UK and Europe have been too dependent on bank financing, and this impacts particularly on businesses wishing to invest and expand," said L&G's Paul Stanworth. "Creating a new channel to deploy longer-dated institutional money in the mid-market sector will help drive economic recovery at a time when bank balance sheets are constrained, as well as creating a further asset class for direct investments by insurance companies and other institutions."

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Source: City A.M. (UK)

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