The work of the partnership could be a blueprint for the new mayor and assembly, if proposals for a greater London authority are backed by Londoners in the referendum on 7 May.
ALG chair Toby Harris and vice-chair Sally Powell will be two of the London local government representatives on the board of the new business-led LDP, which will be chaired by Colin Marshall.
Cllr Harris said:
'London boroughs are keen to work with the private sector. We have shown this in the many successful partnerships we have developed in the past. However, this is the first time all the key players have signed up to look at a pan-London strategy.
'For London to maintain its position as a top world city it must be competitive in the global market in which we are now living. The partnership will be able to pool its expertise not only to attract funding and investment but to look at how we can tackle social exclusion and poverty alongside London's economic revival.
'Business and the public sector must work together to make sure that ordinary Londoners benefit from regeneration and investment in the capital. We must aim to make London a People's London - with a rich environment, attractive architecture, a thriving economy and a healthy city.
'London is the powerhouse of the UK economy. What works for London will benefit the whole of the nation,' said Cllr Harris.