Legal & General (L&G) has increased exposure to housing associations within its private credit portfolio by investing £75m of funding to Cottsway Housing Association Limited.

The investment was on behalf of Legal & General Institutional Retirement and was completed by the private market’s capabilities within L&G’s asset management division.

Housing associations represent a 'core part' of L&G’s private credit portfolio, having currently invested around £1.75bn into the sector.

This investment is aimed at helping support the delivery of further housing supply, through investing in a socially focused housing provider.

In addition to this, has L&G invested in the sector in several other ways, including public bonds and equity, via L&G’s registered provider, L&G Affordable Homes.

Furthermore, L&G has said that housing associations represent a “critical” part of the UK’s infrastructure, playing an important role in housing provision.

Commenting on the investment, L&G Corporate Private Credit investment manager, Anna Szypkowska, said: “Cottsway, and other housing associations, have deep roots in communities across the country and play an integral role in tackling the housing crisis and we’re pleased to support them.

“Lending such as this is a prime example of how institutional investors’ long-term patient capital can deliver investments that benefit society for successive generations, increasing the supply of homes in the communities that need them most.”

Cottsway Housing Association chief executive, Richard Reynolds, said the association was “delighted” to have L&G alongside them and looked forward to building a partnership for the future.

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