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Legal & General has appointed a chief executive for its newly created asset management division, picking a US executive with expertise in private assets in a signal of how it plans to grow Britain’s largest asset manager.
In the latest in a string of announcements under new chief António Simões, L&G said on Tuesday that it had appointed Eric Adler from US insurer Prudential Financial as its new asset management chief, subject to regulatory approval.
L&G, which has more than £1.1tn in assets under management, has combined its fund manager with its private markets business in the unit.
Michelle Scrimgeour, the current chief of the asset manager, Legal & General Investment Management, will step down after a transition period.
Adler, who leads the private alternatives business at Prudential Financial’s asset manager, said he would aim to drive L&G’s ambitions for “achieving profitable growth and mobilising the power of investment to drive economic opportunity and positive social impact”.
He added: “Bringing together scale, global distribution, and expertise across public and private markets and asset classes, L&G is well placed to address the full breadth of client needs, including the increasing demand for responsible, blended investment solutions.”
Simões said Adler had a “track record of building businesses alongside broad investment expertise, deep international experience and a strong client focus”.
Adler previously ran the real estate unit at Prudential Financial’s fund manager, among other previous roles including as head of its European business.
L&G is targeting £500mn-£600mn in operating profits from its asset management business by 2028 as well as growing its private markets platform from £52bn to £85bn.
The announcement comes just a week after L&G agreed to sell its housebuilder Cala Homes as part of a simplification exercise by Simões.
The chief executive, who started in January, announced at an investor day in June how he would create a more streamlined group with a clearer investment case.
But L&G’s shares have not yet responded. They are down 10 per cent since the start of the year, against a 7 per cent rise in the UK blue-chip stock index.
L&G, which became a significant investor in everything from houses to science parks under previous chief Sir Nigel Wilson, earlier this week announced a tie-up with UK state-sponsored pension scheme Nest and Dutch pension fund manager PGGM to invest up to £1bn in build-to-rent properties in the UK.
