Eversheds Sutherland advises Clara Trustee on trio of UK superfund transactions

The first transaction was Clara’s second “small scheme offering” with around 400 members joining an existing small section of Clara Pension Trust. This further demonstrates the growing applicability of the superfund model for smaller defined benefit pension schemes, in this case around £40m of assets, seeking an alternative route to traditional insurance solutions.

The second transaction involved the transfer of 1,281 members of the Arco Group Pension and Life Assurance Scheme into Clara with around £135m of assets. The transfer was agreed as part of Arco's acquisition by H.I.G. Capital, marking Clara's first transaction undertaken in the context of a sponsor acquisition.

The third transaction represents one of the more complex transfers completed by Clara to date, bringing together six separate defined benefit schemes sponsored by two employers into a single Clara section, with an aggregate value of approximately £250m. The transaction required coordination across multiple schemes, trustees and employers and the implementation of a unified legal and commercial framework across all six schemes.

Across all three transactions, Eversheds Sutherland advised Clara Trustee on the legal aspects of the transfers, including transaction structuring, trustee governance, regulatory considerations and transaction documentation.

The Eversheds Sutherland team was led by partner James Ellis, supported by partners Jeremy Goodwin and Emma King, Principal Associates Tom Meyrick and Jill Walters and Associates Tom Green, Bethany Fairclough and Anisa Aziz.

Commercial advice on the transition of administration services was provided by Partner Simon Lightman and Senior Associate Jessica Jesson, with data privacy input from Partner Lorna Doggett and Senior Associate Sarah Perry.

James Ellis, Partner at Eversheds Sutherland, commented:

"These transactions represent another important milestone in the continuing evolution of the UK superfund market. Together they demonstrate the flexibility of the Clara model, from consolidating multiple schemes within a single transaction, to providing solutions in the context of wider corporate activity, and also options for smaller schemes. They also demonstrate Clara’s capacity to sign and close multiple transactions at the same time. We are delighted to have advised Clara Trustee on these transactions and to continue supporting on future transactions as the market develops."

Alan Pickering, Chair of Clara Trustees Limited, commented:

"These transactions have once again demonstrated the value of the relationship between Clara and Eversheds Sutherland. Throughout our journey the team have been a trusted adviser, bringing significant pensions expertise, commercial insight and a thorough understanding of the superfund market. We are grateful for their support on these transactions and look forward to continuing to work together on future transactions as Clara's business continues to grow."

With these transactions, Clara continues to expand its portfolio of transferred schemes and reinforce its position as the UK's only assessed pension superfund, providing schemes with an additional route to securing members' benefits and improving retirement outcomes.