L&G has completed the first close of its new Digital Infrastructure Fund with approximately €600 million in commitments and co-investments, and plans a second close later this year. This milestone represents a key step in L&G’s drive to expand its private markets business to £85 billion by 2028 and to offer institutional investors access to fast-growing, essential digital assets.
The fund will deploy capital into critical infrastructure that underpins the digital economy across Europe and the UK, with a selective global allocation focused on the United States. It targets high-performance data centres, fibre networks, wireless connectivity, and cloud service platforms. By addressing the estimated $2.5 trillion funding gap needed to meet digital demand by 2030, the fund aims for a gross internal rate of return of 15 percent while backing assets that drive productivity, innovation, and long-term economic benefits.
The fund has drawn a diverse range of investors. Local government pension schemes, specialist infrastructure funds, and global asset managers have all committed alongside L&G’s own balance sheet, reflecting confidence in the strategy and in L&G’s ability to incubate solutions aligned with major macroeconomic trends.
The Digital Infrastructure Fund builds on L&G’s recent success in infrastructure fundraising, following the final closing of its Clean Power (Europe) Fund at €607 million earlier this year in partnership with renewable specialist NTR. Together, these offerings demonstrate L&G’s capacity to scale institutional-grade strategies across both energy transition and digital transformation themes.
L&G’s track record in digital infrastructure dates back to its first investment in 2018. In 2019, it took a strategic stake in Kao Data, a UK-based developer of high-performance data centres now operating seven facilities. The fund’s pipeline also includes a £750 million hyperscale data centre development in Newham, London, which is expected to create over a thousand jobs, contribute tens of millions to local gross value added, and potentially supply heat to thousands of nearby homes.
To support the fund’s growth and meet rising investor demand, L&G has strengthened its leadership team with two new appointments. A former partner and investment committee chair from a €10 billion European infrastructure firm has joined as a non-executive director on the fund’s investment committee. A managing director with deep expertise in digital infrastructure investing has also been recruited from a leading asset manager.
These additions reinforce L&G’s specialist team, which averages 15 years of experience in digital infrastructure. The expanded team will lead deal sourcing, due diligence, and portfolio management, ensuring that the fund capitalizes on opportunities to support digital transformation, enhance connectivity, and deliver resilience across critical networks.
KEY QUOTES:
“Infrastructure is rapidly becoming a cornerstone of global private markets, with digital infrastructure leading the charge. The successful first close of our Digital Infrastructure Fund highlights continued momentum behind our strategy to expand our private markets capabilities and reflects growing institutional appetite for essential, yield-generating assets. It is also a further step toward fulfilling our ambition to be a leading global investor, innovating to solve complex challenges for our clients using the power of L&G.”
Eric Adler, CEO, Asset Management, L&G
“The launch of our Digital Infrastructure Fund marks a significant next step in our commitment to invest in the infrastructure that underpins the digital economy. From AI and cloud computing, to data sovereignty and connectivity, the demand for robust digital infrastructure is accelerating across Europe. We’re leveraging our deep sector expertise, further enhanced with the recruitment of Jack and Achal, and strategic partnerships to identify and scale investments that offer strong long-term value for investors while supporting innovation, inclusion and economic resilience.”
Matteo Colombo, Head of Digital Infrastructure Investments, Asset Management, L&G
