Matt Wilmington: Scale is a major part of what makes this possible
Clara Pensions has completed a deal to transfer six pension schemes from the same company into a single section of the Clara Pension Trust.
The transaction covers over 3,300 members across the six schemes with a combined value of approximately £250m. The schemes vary significantly in size, from approximately £1m to £125m.
The schemes will transfer under a single master agreement into one section of the Clara Pension Trust – a structure that Clara said allows the schemes to benefit from Clara's economies of scale as a collective, including the three smallest schemes which would have been unlikely to access a superfund on a standalone basis.
Clara said the agreement was reached against a tight and complex timetable owing to wider corporate activity involving the sponsor – providing a single solution allowing the sponsor to address its legacy pension obligations together.
Clara Pensions chief transactions officer Matt Wilmington said: "This has been a particularly innovative transaction because of both the number and range of schemes involved. Bringing together the six schemes has enabled the members to benefit from both the additional security provided by the Clara solution and significant economies of scale.
"Scale is a major part of what makes this possible. Half of these schemes would be too small to access a superfund, but by bringing them together we can provide all members with access to the same enhanced security and clear journey towards insured buyout.
"It also demonstrates the flexibility and speed of execution that Clara can provide alongside wider corporate activity. We are very pleased to have worked with the sponsor, trustees and advisers to deliver a solution across all six schemes within a demanding timetable."
Wilmington told PP he was confident the superfund would have had 10 transactions signed and announced by the end of the year – taking Clara's total assets under management to around £2.5bn.
He said superfunds were becoming an established endgame option – noting that, by next year, Clara will have completed 10 transactions, and there are likely to be two or three more superfunds in the market.
Wilmington added: "My goal is that superfunds just become endgame providers rather than than just alternative endgame providers."
Marelli UK legal and compliance manager Karen Myring said: "The pension schemes represented an important consideration as we progressed our wider corporate plans. Reaching agreement with Clara provides greater certainty for members while allowing all six schemes to be addressed through a single transaction."
LCP partner Sam Jenkins was lead risk transfer adviser to the trustee. He said: "This first-of-its-kind transfer of multiple schemes demonstrates what can be achieved when all parties work together to navigate a complex transaction. Meeting a challenging timeline required multidisciplinary expertise and a solution-focused approach, underpinned by close collaboration across the trustee, sponsor, Clara and all advisers."
Burges Salmon partner Clive Pugh added: "The superfund market has not seen a six scheme transaction before, and it called for creative thinking from everyone at the table. For our client, the pensions solution was in the context of wider corporate activity so we were delighted to be able to deliver the project on an accelerated basis.
"What makes this deal stand out for me is that it works on both sides of the pensions equation. Our client has actively met its legacy liabilities, while members, including those in the very smallest schemes, are protected."
Zedra Governance client director Alastair Meeks continued: "We are very pleased to have secured a successful outcome for the schemes that achieves both sponsor and pension scheme objectives, and to have done so quickly and efficiently."
The deal follows Clara's first deal - the transaction with the £590m Sears Retail Pension Scheme in November 2023 - and a number of subsequent deals since, including 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.
This year. Clara completed smaller schemes deal with the £43m Videndum DB Pension Scheme in April; a deal with an unnamed £40m pension scheme; and a £135m superfund deal with Arco pension scheme last month.
Marelli UK were advised by Burges Salmon and BDO. The trustee of the schemes was Zedra who were advised by Sackers, Squire Patton Boggs and LCP. Clara received legal advice from Cameron McKenna Nabarro Olswang (CMS) and the Clara trustee received advice from Eversheds Sutherland. Hymans Robertson provided scheme actuarial services to Clara.
