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, Clara will also inject additional ringfenced capital into the scheme, immediately enhancing the security of benefits for members as they begin their journey to an insured buyout. Members will transfer to Clara shortly, where they will continue to receive their full pension entitlements.
The transfer of the Videndum members demonstrates Clara’s continued flexibility and suitability for a wide range of schemes and situations. Clara’s previous transactions include sponsor-led and trustee-led processes, a PPF+ case, and Clara’s connected covenant structure which allowed the scheme to maintain the link to its sponsor.
Matt Wilmington, Chief Transactions Officer at Clara-Pensions, said: “I want to give a warm welcome to the members of the Videndum DB scheme, and to say thank you to everyone involved for their hard work in improving the security of the members benefits. 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.”
Jon Bolton, Group Company Secretary at Videndum plc said: “The Company has been working over a long period of time to secure Videndum Pension Scheme members benefits. With the Scheme now in a strong financial position, we have taken the decision to transfer the Scheme to Clara which will further strengthen and secure members’ benefits for the long term.”
Tom Stockley of Aretas Trustees said: “Having carefully assessed all options, we are really pleased to have guided the Scheme through this process. As trustees, our overriding priority throughout has been the long-term security of members’ benefits. This transaction means that our members’ pensions are secured into the future.”
Cath Williams, also of Aretas Trustees, commented: “Clara’s bridge-to-buyout model, alongside its clear member-first ethos, gave us confidence that members’ interests would remain protected over the long term. This outcome was delivered through a constructive and straightforward transaction process, and huge thanks goes to the advisory teams, Videndum and Clara for working so diligently to provide our members with this solution”
Jonathan Repp, Director at Mercer said: “Leading this transaction on behalf of the Trustee of the Videndum Scheme we have been able to find the right solution for its members and the trustees. This agreement shows how superfunds like Clara can make pensions safer for members, trustees and employers now and in the future. From our work on other superfund deals, we know a practical, cooperative approach helps make these transactions successful. We congratulate the Trustee, Videndum and the scheme members on a great outcome and look forward to helping with similar transactions in the months ahead.”
In addition to this transaction, Clara’s broader pipeline also continues to grow. Active discussions are under way with over 30 schemes of different sizes and shapes, while the Pension Schemes Bill, which is nearing completion, will put Superfunds on a permanent legislative footing.
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