Legal & General appoints new head of asset management for growth

Unlock Editor’s Digest for free

FT editor Roula Khalaf selects her favorite stories in this weekly newsletter.

Legal & General has appointed a chief executive for its new asset management division, choosing an American executive with expertise in private assets, a signal of how it plans to grow Britain’s biggest asset manager.

In the latest in a string of announcements by new boss António Simões, L&G said on Tuesday it had appointed Eric Adler from US insurer Prudential Financial as its new head of asset management, subject to regulatory approval.

L&G, which has more than £1.1 billion in assets under management, has combined its fund manager with private markets work in the unit.

Michelle Scrimgeour, current head of asset manager, Legal & General Investment Management, will step down following a transition period.

Adler, who heads the private alternatives business at asset manager Prudential Financial, said he would aim to drive L&G’s ambitions to “achieve profitable growth and leverage 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 meet client needs, including the growing demand for responsible and blended investment solutions.”

Simões said Adler had “a background in building businesses, along with extensive investment experience, deep international experience and a strong customer focus.”

Adler previously led the real estate unit at fund manager Prudential Financial, among other previous roles, including head of its European business.

L&G targets operating profits of £500m to £600m from its asset management business by 2028, as well as growing its private markets platform from £52bn to £85bn of pounds sterling.

The announcement comes just a week after L&G agreed to sell its builder 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 shares have yet to respond. They are down 10% since the start of the year, compared to a 7% rise in the UK stock index.

L&G, which became a significant investor in everything from homes to science parks under former boss Sir Nigel Wilson, earlier this week announced a tie-up with UK state-sponsored pension scheme Nest and Dutch fund manager PGGM pensions to invest up to £1 billion in UK build-to-let properties.