The UK is seeing the launch of its first so-called superfund, designed to consolidate defined benefit schemes, with an initial £500m of capital subject to transaction approvals.
The superfund is led by former Pension Protection Fund Chief Executive Alan Rubenstein.
Both Warburg Pincus and Disruptive Capital, the private equity firm of Edi Truell, founder of buyout specialist Pension Insurance Corporation, have invested in the venture.
The Pension SuperFund will accept bulk transfers of DB assets and liabilities and consolidate them into a single scheme.
“The advantages of scale provided by consolidation will enable The Pension SuperFund to achieve higher investment returns, stronger risk management and lower costs,” its founders said.
Apart from Rubenstein the team behind the superfund includes Marc Hommel, a former PwC partner, and Luke Webster, Chief Investment Officer of the Greater London Authority.
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