Clara announces superfund deal with the Videndum DB Pension Scheme

Under the agreement, the 500 members of the Videndum DB scheme and its £43m of assets will transfer to the Clara Pension Trust. As with its previous transactions, Clara will also inject additional ringfenced capital into the scheme. Members will continue to receive their full pension entitlements.

The deal marks Clara's fifth transaction and is the first to make use of a smaller schemes structure whereby the Videndum scheme will join a new open section of the Clara Pension Trust, a section that will allow other smaller schemes to join in the future.

The superfund's previous four transactions saw each scheme set up as an individual section within the Clara scheme.

Clara Pensions chief transactions officer Matt Wilmington said Clara was trying to make the process more cost-effective for smaller schemes.

He said: "We are cautiously and carefully trying to grow the smaller schemes market for superfunds, alongside trying to drive the market for the larger schemes and to make sure that superfunds get to get to scale."

Wilmington added: "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."

Videndum group company secretary Jon Bolton added: "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."

A growing pipeline

The deal follows Clara's transaction with the £590m Sears Retail Pension Scheme in November 2023; its Pension Protection Fund+ deal with the £600m Debenhams Retirement Scheme in March 2024; its active sponsor transaction with the £210m Wates Pension Fund in December 2024; and its "connected covenant" deal with the £55m Church Mission Society Pension Scheme last June.

Clara said its pipeline of schemes looking to transfer has now grown to over 30 as trustees and sponsors begin to recognise the benefits to members of Clara's bridge to buyout model – with schemes in the pipeline ranging from around £30m to £2bn in size.

It also comes as the Pension Schemes Bill is set to introduce a legislative framework for superfunds.

Wilmington said there was a "wide range" of schemes that had approached Clara – from those that had approached the superfund for a "non-transactional" idea on price, all the way through to schemes were Clara was delivering transactional pricing with a view to proceeding to a deal this year.

He said: "I certainly wouldn't expect the Videndum transaction to be the last one this year. There are some more in our pipeline that are very well advanced, and we look forward to getting those announced in the next few months."

Advising on the Videndum deal

Aretas Trustees, the corporate trustee of the Videndum DB Pension Scheme, was advised by Mercer as risk transfer consultant and LCP as actuarial, investment and covenant adviser. They were supported by Pinsent Masons and Trafalgar House Pensions Administration. Videndum received legal advice from Sackers.

Clara received legal advice from Cameron McKenna Nabarro Olswang and the Clara Trustee received advice from Eversheds Sutherland. Hymans Robertson provided scheme actuarial services to Clara.

Aretas Trustees partner and trustee director Tom Stockley 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."

Aretas Trustees partner and trustee director Cath Williams continued: "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"

Mercer director Jonathan Repp added: "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."

LCP advised the trustee in assessing the transfer to Clara against TPR's superfund gateway tests and in providing the actuarial certification required for the transfer to go ahead, as well as advising on all aspects of managing the investment risks of the transaction.

Partner and head of DB consolidation Laura Amin said: "2026 is lining up to be a pivotal year for the superfund market with the forthcoming legal framework through the Pension Schemes Bill and with around three new providers understood to be working through The Pensions Regulator's superfund assessment process –with the potential for an even more active and competitive market by the end of the year.

"Clara's pipeline of active discussions with over 30 schemes is testament to the growing momentum in the superfund market and is 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."

Hymans Robertson alternative risk transfer specialist Jitin Tahiliani said the deal "feels like a real milestone for the superfund market" as it marks the first deal under Clara Pensions' small scheme section.

Tahiliani said: "For DB pension trustees and corporates of smaller schemes, this is a meaningful development. It widens the range of endgame options at a time when many have felt constrained to an insurance route. For smaller schemes in particular, the ability to find a safe and secure home for members' benefits at a lower cost and step away from high ongoing running expenses can create material value for corporates."

"It's also notable that this is the first superfund transaction backed by a listed company. That sends a clear signal about the growing confidence in the superfund market. It shows that superfunds are becoming a credible, mainstream endgame option, capable of supporting transactions for schemes with a wide range of sponsor covenants."

He continued: "Looking beyond Clara, this deal also highlights the direction of travel for the wider market. With TPT looking to make superfund solutions available to schemes down to around £50m, and Clara opening the door for schemes down to the £30m mark, the landscape for smaller schemes is changing quickly. This is great news as it brings the value of scale and consolidation delivered by superfunds to the smaller end of the market, which is precisely the end that benefits most."

Van Lanschot Kempen is the investment manager to Clara. Managing director and UK head of client solutions Nikesh Patel said the latest transaction was "another clear example of the broadening end-game environment for UK DB pension schemes, and the continued momentum for superfunds within it".

He added: "Clara continues to demonstrate the strength of well-structured, flexible solutions for different schemes in different situations. In delivering this bespoke mandate, we will combine our market-leading expertise in building a robust private markets allocation alongside a tried and tested approach to managing interest rate and inflation risks."