Standard Life announces partnership with investor consortium

Standard Life announced a strategic partnership with CVC Capital, Prudential Financial, Goldman Sachs, MS&AD, and other long-term institutional investors to expand its Pension Risk Transfer business to support schemes across a broader range of sizes, including the largest and most complex defined benefit schemes, subject to regulatory approval.

The Partnership will be funded by a combined initial capital commitment of up to £2 billion, expected to be drawn over five years, including £500 million from Standard Life, with the balance from the consortium, which is led by CVC and Prudential.

CVC, PGIM (Prudential’s asset management business) and Goldman Sachs Alternatives will originate “high-quality assets” to back pension scheme liabilities for the partnership and for Standard Life’s existing PRT business.

“We are delighted to announce the expansion of our PRT business in partnership with a group of internationally recognised financial institutions, who are committing global capital into the UK PRT market. For over 200 years, Standard Life has supported people across the UK to plan for and secure their retirements, and this focus and commitment remains central to our strategy today. By bringing together our comprehensive PRT capabilities with our partners’ specialist private markets capabilities and significant capital resources, coupled with a trusted and well-known brand in Standard Life, we will be able to offer trustees and sponsors for the largest pension schemes an alternative to secure the pensions of their members across the UK. This partnership further accelerates Standard Life’s vision to become the UK’s leading retirement savings and income business.” – Andy Briggs, Group Chief Executive Officer, Standard Life.