WTW is poised to buy the workplace pension provider Cushon, according to latest reports.
Sky News is reporting that WTW is the front-runner to buy the master trust provider from NatWest after an auction. Last month Corporate Adviser exclusively revealed that WTW, Legal & General and Royal London were on a shortlist of potential buyers.
The sale price has not been disclosed but Cushon was bought by NatWest in 2023 for £144m. Cushon’s management retained a 15 per cent stake in the business.
Cushon has around £3bn of assets under management. The proposed sale follows the Government’s planned scale test, which will require DC workplace pension providers to have assets of £10bn by 2030 and a clear plan to reach £25bn by 2035.
WTW also operates LifeSight master trust, which has grown rapidly in recent years. It has been one of the top-performing master trusts, in terms of the investment performance of its default fund, according to CAPA data. Figures to the end of 2024 show LifeSight had £21.7bn in AUM. The purchase of Cushon would see it comfortably pass the £25bn threshold ahead of the 2030 deadline.
Cushon was initially launched as a workplace Isa provider but moved into the workplace pensions market with a series of acquisitions between 2020 and 2022. This included the Salvus Master Trust, the Workers Pension Trust and the Creative Pension Trust.
As one of the newer master trust providers in the DC sector, NatWest Cushon has built its proposition on strong technology and ESG credentials. It was also one of the first DC providers to invest part of its default into private markets and productive assets — one of the key drivers behind the government plans to drive consolation in this market. As well as the opportunity to build or add to scale, Cushon’s technology is seen as being a key attraction for a potential buyer.
Both WTW and NatWest Cushon have been contacted for comment.