Clara-Pensions in talks to raise £100m ‘superfund’ with approval of industry regulator

( via– Wed, 4th May 2022) London, Uk – –

The first pension ‘superfund' to be approved by the industry regulator is in talks to raise £100m of new funding in anticipation of a glut of retirement scheme mergers.

Sky News has learnt that Clara-Pensions has appointed bankers at Houlihan Lokey to raise the additional equity.

Industry sources said that as much as half could come from Sixth Street, the investment firm which is already an investor in Clara.

The company has started approaching other potential backers in recent weeks, according to pensions industry sources.

Clara achieved an important milestone late last year when it gained formal approval from The Pensions Regulator to begin sweeping up underfunded corporate pension schemes.

Launched in 2018, the vehicle's painstaking progress to secure an official green light reflects the protracted debate about the new breed of pension consolidators.

Thousands of defined benefit schemes have been identified as targets for superfunds, which promise better governance and security for pensioners.

Another vehicle, Pension SuperFund, which is headed by the City financier Edi Truell, is also in talks with watchdogs.

Clara had set a target of consolidating £5bn of pension liabilities within five years.

A spokesman for Clara declined to comment.

By Mark Kleinman