An illiquid asset sales platform is preparing for its first auction of investments from private sector defined benefit (DB) pension schemes.
The platform, MeltX, is designed to help DB schemes sell illiquid assets such as infrastructure and real estate to access additional liquidity as they prepare for potential bulk annuity transactions.
Its first auction is scheduled for June and already features £1bn worth of investments in infrastructure, private credit and real estate. There are no limits to deal sizes, but current strategies and assets for sale range from £15m to more than £100m.
Stuart Hanson, co-founder of MeltX, said: “While many UK pension funds are looking for liquidity from private markets, there is an increasing number of institutional investors wanting to access these opportunities on the buy side. MeltX is an efficient and cost-effective solution to connect these sellers and buyers, creating a win-win outcome for all involved.”
Oliver Jaegemann, co-founder, added that the firm had been focusing on assembling a “critical volume of sellers and buyers right from the very first auction”.
“To achieve this, we’ve focused on simplifying the secondaries process for sellers and buyers, while recognising the important role of trusted advisers in these processes,” Jaegemann said.
The platform’s second auction will be open for sellers to list their assets from June, with the auction itself taking place in the third quarter of the year.
Consultancies such as Isio and XPS have launched specialist dealing services for pension schemes with illiquid assets to help them sell at an attractive price when preparing for the bulk annuity market.
Innovation needed to stop illiquid assets delaying bulk annuities
In February, Aon wrote an open letter to insurers calling for more innovation on tackling illiquid assets held by pension schemes approaching the bulk annuity market. Read more
