Consolidator scheme Clara Pensions has reached agreement with the trustees of the Videndum DB Pension Scheme, marking the latest ‘superfund’ transaction to take place in the UK market.
Under the agreement, the 500 members of the Videndum DB scheme and £43m of assets will transfer to the Clara Pension Trust.
As with all previous transactions by the consolidator, Clara will also inject additional ringfenced capital into the scheme, looking to enhance the security of benefits for members as they begin their journey to an insured buyout. Members will be expected to transfer to Clara shortly, where they will continue to receive their full pension entitlements.
Matt Wilmington, chief transactions officer at Clara Pensions, says: “Superfunds continue to demonstrably increase member security and provide a more certain journey to an insured future. Clara continues to innovate, and we are working closely with a wide range of schemes to deliver an improved outcome for their members. We have a strong pipeline and anticipate announcing further transactions soon.”
Clara received legal advice from Cameron McKenna Nabarro Olswang. Hymans Robertson provided scheme actuarial services to Clara.
Consultancy Lane Clark & Peacock also advised on the deal between Clara and the Videndum scheme.
Laura Amin, head of DB Consolidation at LCP, says: “Clara’s pipeline of active discussions with over 30 schemes is testament to the growing momentum in the superfund market. It is also in line with the conversations we have been having with both sponsors and trustees who are, rightly, factoring superfunds into their endgame discussions when looking at the range of options available to securely deliver members’ benefits in the long-term.”
Videndum is the fifth DB fund to join Clara since the consolidator’s foundation in 2017 on a ‘bridge to buy-out’ model.