The fund is to invest in both equity and debt across the UK, with Birmingham, Bristol and Leeds showcased at a Downing Street Investment in Cities event yesterday. It will take construction risk and plans to invest in different sectors and projects.
L&G is acting as both principal investor and manager of the fund, which has been set up as a co-investment vehicle.
The company’s chief executive Nigel Wilson said: “We are well-positioned to work alongside UK and international money to channel funds into regeneration that delivers growth, homes and jobs.”
And Greg Clark, minister for cities, said the new fund was “fantastic news and a vote of confidence in the UK economy and our regional cities”.