UK Member Consolidator Clara-Pensions Hires Kempen as Fiduciary Manager

Posted on 06/09/2021

U.K. superfund Clara-Pensions Limited selected Kempen Capital Management as its fiduciary manager. Clara was set up to bring defined benefit assets as well as liabilities of many smaller plans together to help them move toward a buyout. Clara was assisted in the search by consultant Lane Clark & Peacock.

Kempen will implement an investment strategy on behalf of Clara and its backers. Kempen will develop an asset allocation for Clara and deliver a low-risk investment strategy that is expected to last up to 10 years for each of the pension funds consolidated under Clara.

The model of Clara-Pensions is backed by private capital from Sixth Street Partners (then TPG Sixth Street Partners (TSSP)) and reinsurance company Wilton Re Overseas Limited. The capital will be used to replace the sponsor covenant when assets and liabilities of pension funds are transferred to Clara. Clara’s model serves as a bridge to the insured market for Britain’s defined benefit schemes and their members.

Sixth Street Partners committed an initial £225 million to Clara-Pensions revealed on December 19, 2018. Wilton Re invested in December 18, 2020.

At the moment, Clara does not run any assets because no superfund has yet been approved by the regulator.

Keywords: Van Lanschot Kempen, Kempen & Co.

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