Key Takeaways
- Sector: Digital Infrastructure.
- Geography: United Kingdom.
Analysis
Legal & General (L&G) has announced the first close of its new Digital Infrastructure Fund (LDIF), securing approximately €600 million in commitments and co-investments. The fund will focus primarily on UK and European digital infrastructure, with selective exposure to the United States.
LDIF will invest in high-quality assets essential to the digital economy, including data centres, fibre networks, wireless connectivity, and cloud infrastructure. It is targeting a gross internal rate of return (IRR) of 15%, aiming to deliver long-term value by supporting digital transformation and expanding connectivity across core markets.
This new vehicle marks a significant step in L&G’s plan to scale its private markets platform to £85 billion by 2028. The launch follows the successful €607 million final close of the L&G NTR Clean Power (Europe) Fund, reflecting strong investor appetite for infrastructure strategies that align with macroeconomic trends like energy transition and digitisation.
LDIF is structured as a Luxembourg-domiciled Article 8 fund and has attracted a broad base of institutional investors, including local government pension schemes, infrastructure funds, and global asset managers. L&G will co-invest alongside clients using its own balance sheet.
Eric Adler, CEO of L&G Asset Management, noted: “Digital infrastructure is becoming central to global private markets. The successful close of LDIF demonstrates the momentum behind our strategy and the institutional demand for essential, yield-generating assets.”
L&G has been active in the sector since 2018 and holds a stake in Kao Data, a leading UK-based data centre operator with seven facilities across four locations. It is also backing a £750 million hyperscale data centre project in Newham, London, which is expected to create over 1,000 jobs and contribute £88 million to local economic output.
To support the fund’s growth, L&G has appointed Jack Colbourne (formerly of Arcus Infrastructure) as a non-executive director and Achal Arora (ex-Macquarie Asset Management) as Managing Director of Digital Infrastructure Investments.
Matteo Colombo, Head of Digital Infrastructure Investments at L&G, said: “From AI and cloud computing to data sovereignty and connectivity, demand for robust digital infrastructure continues to grow. LDIF is designed to capture that opportunity while delivering long-term value and impact.”
With deep sector expertise, early mover advantage, and a scalable platform, LDIF positions L&G to play a key role in financing the infrastructure that powers the next phase of the digital economy.