Defined benefit pension schemes consolidator Clara-Pensions has announced the addition of Wilton Re as a capital partner.
Wilton Re Overseas Limited, a member of the Wilton Re Group of companies, will join global investment firm Sixth Street in supporting the growth of Clara-Pensions.
Wilton Re is a global reinsurer that specialises in providing M&A solutions for life insurance and related markets.
“Wilton Re’s investment represents a clear vote of confidence in consolidation, the Pension Regulator’s regulatory regime and Clara’s member-first model,” said Adam Saron, CEO of Clara-Pensions.
“With the combined support of Sixth Street and Wilton Re, now more than ever, I am confident that Clara has the resources required to support members on their journey to buy-out,” Saron added. “We look forward to completing the Pension Regulator’s rigorous assessment and welcoming our first members.”
Chris Stroup, Chairman of Wilton Re’s Board of Directors, also commented: “We have tremendous respect for the work that Adam and his team and Sixth Street have completed thus far in preparing Clara to succeed. We’re delighted to invest in Clara’s member-first model and look forward to working further with the Clara team alongside Sixth Street.”
Clara’s consolidation model aims to serve as a bridge to the insured market for defined benefit pension schemes and their members in Britain.
When a scheme enters Clara, its assets and liabilities are supported by capital from Clara’s capital providers, with the idea being to secure a lower-risk journey to buy-out.
The closing for Wilton Re’s initial capital funding is subject to customary antitrust approvals and is anticipated to occur in the fourth quarter of 2020.
Clara were advised in this transaction by Houlihan Lokey.
