Cushon is acquiring Creative, manager of the Creative Pension Trust.
Cushon will now have 400,000 customers and £1.7 billion in assets under management, including ISA savings, with annual inflows of more than £300 million. This is Cushon’s third workplace pension acquisition in two years, in line with regulatory objectives to drive further market consolidation.
In the last two years, there have been four major consolidations in the workplace pensions market, three of which have been completed by Cushon. Cushon is now the fifth largest master trust pension provider in the UK, thanks to the 14,500 additional employers under Creative Pension Trust.
The acquisition was supported by a further fundraising round, raised by Cushon’s existing investors and is expected to close in the first quarter of 2022, subject to regulatory approval.
Cushon CEO Ben Pollard says: “Our mission is to offer UK savers a convenient, climate-friendly, and great value way to save, through a combination of cutting-edge technology and socially responsible investments. Right now, workplace pensions are simply too complicated, boring, and disconnected from things people care deeply about. Cushon is here to change that, and today’s announcement is a hugely significant milestone for us.
“The funding will continue to fuel Cushon’s growth, enable us to scale even faster, and accelerate some exciting new features within our app. It will also support the acquisition of Creative which not only doubles the reach of our app-first climate-friendly pension but also incorporates the talent, expertise and credibility of the Creative business. This is another momentous step on our journey to ensure millions of people across the UK have the ability to access innovative workplace savings solutions in the palm of their hand, together with a right to feel optimistic for the future they are helping to build via their investments.”
Creative CEO Sally Webber says: “With more and more customers looking to use technology to manage their pension, and a heightened focus on the environmental and social impact of investments, joining the Cushon group will allow us to ensure our customers’ interests are both considered and protected. Our employers and customers alike will benefit from Cushon’s wider workplace savings offering and its innovative, technology-led approach – an approach that is unlike any other workplace savings provider in the market. We are excited to become a part of the Cushon Group, enhancing the offering for both our employers and customers and using market-leading innovation to improve engagement with pensions.”
Augmentum Fintech CEO Tim Levene says: “Workplace pensions and ISAs are ready for transformative change. Public policy will continue to encourage people to save more and there is significant opportunity to successfully challenge incumbents struggling to transform digitally. Cushon has become the leading digital disruptor in this space with a world-class technology platform and a truly innovative product.”
AshGrove Capital founding partner Phil Fretwell says: “We are delighted to continue to support Cushon with further acquisition and growth funding. The acquisition of Creative is a significant milestone that more than doubles Cushon’s assets under management and positions Cushon as the stand out consolidator in the tech-enabled workplace savings market. The combination of structural organic growth in master trusts, driven by annual inflows, coupled with a clear market need to consolidate master trusts in order to drive better outcomes for savers remain central tenants to our investment thesis. We look forward to continuing to work with the team on the many exciting initiatives Cushon has planned.”
Hymans Robertson partner Michael Ambery says: “The announcement about Cushon’s purchase of Creative is great news and an indication of a very busy Workplace Savings market in 2022. This is the first headline consolidation of Master Trust providers this year and highlights a market that is moving in this direction. We believe this acquisition will provide real value for members.
“It is hugely important in a changing market to be aware of consolidation and the impact this will have on our industry, not least what this means for the selection and reviewing of providers. Today’s announcement is in many ways a logical one and sends positive messages to consumers and the market itself. A clear focus on technology, sustainable investment and the heightened importance of value are strong principles of this transaction. This further reflects the workplace provider market evolution and the importance of adapting to customer needs. We believe further consolidation is likely in the coming months.”
