Legal & General Joins Global Real Estate With $3.5B Proprium Deal

The K-based financial services giant Legal & General (L&G) has acquired a 75% stake in Proprium Capital Partners, a real estate private equity firm managing $3.5 billion in assets worldwide. The acquisition marks a pivotal step in L&G's ambition to scale its private market assets from £50 billion to £85 billion by 2028.

Proprium, originally part of Morgan Stanley before spinning out in 2013, has a footprint that spans Europe, Asia-Pacific, and the Americas, with a diversified portfolio that includes residential, student housing, hospitality, and logistics sectors.

“This transaction is a significant milestone in the evolution of our business,” said Sir Nigel Wilson, CEO of Legal & General. “We believe in the power of long-term capital to deliver real-world impact, and Proprium’s expertise and global presence perfectly complement our strategy.”

A Global Real Estate Push

The acquisition brings with it a team of experienced investment professionals and a pipeline of opportunities that align with L&G’s broader focus on housing, infrastructure, and urban regeneration. The move is part of a broader industry trend, as institutional investors look to alternative assets and private equity as buffers against market volatility and inflationary pressures.

John Carrafiell, Managing Principal and Co-Founder of Proprium, emphasized the strategic synergy:

“We are excited to join forces with Legal & General. This partnership gives us the scale and long-term capital needed to expand our platform while maintaining our entrepreneurial investment approach.”

L&G said it will retain the existing management team at Proprium, ensuring continuity while scaling operations across its existing markets and beyond.

Private Markets on the Rise

The acquisition reflects a rising appetite for private real estate investments, particularly in sectors driven by demographic shifts, urbanization, and digital transformation. By investing in Proprium, L&G positions itself to capitalize on these global trends, tapping into demand for purpose-built rental housing, logistics infrastructure, and sustainable urban development.

The deal also supports L&G's broader mission of inclusive capitalism, a framework that promotes investments delivering both commercial returns and societal value. Proprium’s investment philosophy, rooted in long-term relationships and responsible investing, aligns closely with this vision.

As real estate markets evolve post-pandemic, institutional investors are increasingly shifting toward diversified global portfolios with an emphasis on resilience, sustainability, and impact. With Proprium now in its fold, L&G is well-positioned to play a leading role in shaping the next phase of the real estate private equity landscape.

This acquisition is more than just a business transaction—it’s a strategic alignment of purpose, scale, and global ambition.