KPMG’s pensions advisory business has relaunched following a £200m leveraged buyout that will see it rebrand as Isio.
Inaugural Isio chief executive Andrew Coles told Professional Pensions that his staff had been preparing for the move from under KPMG for several months while clients "have shown faith" in the new independent business model.
This comes after the audit giant first signed a conditional agreement to sell its pensions arm to Exponent Private Equity in early December.
The pensions arm has advised around a third of FTSE 100 companies in recent years, with its buyout coming amid widespread restructuring of the big four auditors following increasing national and global scrutiny of their operations.
Coles said being a standalone business and "being able to talk to the whole of the market" was an "exciting" prospect - particularly as the Budget is approaching and the regulator is starting its consultation on the funding code.
He said: "We have a strong actuarial and administrative business advising scheme trustees as well as our investment advisory work, which has grown especially."
Coles added: "We have developed a reputation for looking at issues underpinning the major trends which is really outcome focused and then providing tailored solutions. We're not concerned whether those good ideas are deployed on the corporate or trustee side, we're now all about bring them together.
"If we want to continue to drive security, sponsors and trustees should work closely together and their help with member communications from both sides is vital."
Around 500 former KPMG staff including 20 partners will make up the Isio team, with a small amount of auditors from the business remaining behind. The business is currently based across eight regional hubs.
Coles told PP he is "full of energy" following formation of Isio, which will see him work outside of the KPMG umbrella for the first time in 24 years.
He said: "I'm keen to make sure we, as a significant player, can find a new voice and bring that voice to the debates on funding and the future of contributions and other important issues.
"I want to take the parts of KPMG that are great and replicate them, but also build up our own culture and our own values and make the business a fun place to work and to learn.
Coles confirmed Isio would focus specifically on building new technology abilities as it sought to differentiate itself from competitors.
"Seeing our business grow doesn't just mean bringing in new people, it means bringing in and teaching new skills. I'm not convinced the pensions industry has moved as fast as it could have done with regards to technology and user's technology experience.
"We want to look at investment opportunities within tech and move the industry forward. This is an area where pensions can really learning from banking and other sectors within and outside finance and how they get access to information and to their clients.
"We have a unique opportunity to take what is established and well-known with scale and with impact, but also keep the feel of a start-up business and harness those benefits for clients, trustees and scheme members."
The newly-branded Isio team will continue to work from within eight regional KPMG offices across the UK.
As part of the deal, Roger Siddle, an experienced private equity portfolio chairman with a background in professional services leadership, has been appointed chairman of the new business.
KPMG said it will reinvest the proceeds of the sale into its wider business.
KPMG chairman Bill Michael explained: "We have been proud to have had such a strong pensions business here in the UK, but we recognise that Exponent are now the right partners to support Isio's long-term growth strategy. The transaction will allow us to continue our programme of investment in the core audit, tax, deals and consulting services offered to our clients."
Exponent was advised by Deloitte and law firm Macfarlanes on the transaction, while KPMG was advised by KPMG's Corporate Finance practice. KPMG pensions partners' legal advisers were Addleshaw Goddard and their financial advisers were Liberty Corporate Finance Associates.
