On the go: Superfund Clara Pensions has announced that TPG Sixth Street Partners, a global credit and credit-related investment platform partnered with private equity group TPG, will become its provider of long-term capital.
TPG Sixth Street Partners is to provide initial capital of £225m, an amount expected to increase to £500m in the new consolidator, Clara Pensions, as it grows to scale.
Clara aims to consolidate at least £5bn of pension liabilities over the next five years. It is now looking to accept its first pension scheme members, subject to any applicable regulatory approvals.
Clara’s model serves as a bridge to the insured market for UK defined benefit schemes and their members.
When a scheme enters Clara, its assets and liabilities are supported by capital that is provided by both the sponsoring employer and its capital providers with the ultimate aim of buyout. Only once Clara delivers an insured future to every scheme member will its finance partners receive a return on capital.
Adam Saron, CEO of Clara Pensions, said: “Strong, patient capital is key to our model for securing members’ pensions.”
The announcement follows several other key building blocks for Clara as it prepares to welcome pension scheme members.
In September, Clara announced the appointment of Lawrence Churchill as chair, and of the first three trustees of its independent governing board. More recently, Clara confirmed Hymans Robertson as its actuarial adviser and CMS as its legal adviser.
The government is currently consulting on a new legislative framework for authorising and regulating DB superfund consolidation vehicles.
