Standard Life launches $2.7 billion UK pension venture with CVC, Prudential-led group
PRU•Deal context
The deal follows recent moves by private capital firms to partner with insurers in retirement markets, combining long-term capital with private market investment capabilities to capture growing pension de-risking demand.
Funding and consortium members
The partnership, called Standard Life PRT Solutions, will be funded through capital commitments of up to £2 billion over five years, including £500 million from Standard Life and a £400 million commitment from CVC. The remainder will be provided by other consortium members.
The consortium also includes Goldman Sachs, MS&AD and other long-term institutional investors.
Platform focus and market backdrop
British retirement specialist Standard Life will lend its pension risk transfer expertise and retain full operational control of the platform.
PRT takes on pension liabilities from companies looking to offload their retirement schemes. It has become a key growth driver in the insurance industry.
Standard Life said the platform would focus on larger UK pension schemes and corporate sponsors looking to transfer defined-benefit pension obligations to insurers.
According to CVC, the UK PRT market remains one of the world's largest, with about £1.2 trillion of defined-benefit pension liabilities yet to be transferred to insurers.
