Clara-Pensions, the member-first consolidator for defined benefit pension schemes, today (19 December 2018) announces that TPG Sixth Street Partners (TSSP), the global credit investment firm with $29 billion in assets under management, will become its provider of long-term capital.
TSSP has committed an initial £225 million, an amount expected to grow to £500 million as Clara grows to scale. Clara’s ambition is to consolidate at least £5 billion of pension liabilities over the next five years. With long-term capital now in place, Clara is ready 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 Britain’s 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. This enables a lower-risk investment strategy and a more compelling proposition for insurers. 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. Finding the right partner to provide this has been a careful, crucial journey and TSSP fulfils exactly the criteria we have been looking for. Its track record and commitment to long-term capital investments chime perfectly with Clara’s aims.
“Today is another significant milestone for Clara and our future members. We now look forward to welcoming our first pension members and beginning their journeys to a safer, insured future.”
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 Chairman and the first three trustees of its independent governing board. More recently, Clara has confirmed Hymans Robertson as its actuarial adviser and CMS as its legal adviser.
About TSSP
TPG Sixth Street Partners is the global credit and credit-related investment platform partnered with TPG. Co-founded in 2009 by Managing Partner Alan Waxman, TSSP has approximately $29 billion in assets under management. TSSP has a long-term oriented, highly flexible capital base that allows it to invest across industries, geographies, capital structures and asset classes. For more information, please visit www.tpg.com/platforms/tssp.
Media contacts
For Clara:
David Chambers – dchambers@headlandconsultancy.com / +44 (0)20 3435 7465
Jessica Vallance – jvallance@headlandconsultancy.com / +44 (0)20 3805 4847
For TSSP:
Patrick Clifford – pclifford@tssp.com / +1 646 906 4339