K3 Advisory and Cartwright announce £103 million full buyout
K3 Advisory, the pension market’s only specialist independent bulk annuity and consolidator advisory business, and market leading end-game advisory business to the fiduciary management market, together with actuary and consultant Cartwright, today announced the successful completion of a £103 million buyout for a US based engineering company with operations in the UK and globally. The deal completed in December 2021, with insurer Just Group, and covered 298 deferred members and 25 pensioners.
The buyout is the second transaction for the scheme following a pensioner buy-in in August 2020, also with Just Group.
Adam Davis, Managing Director at K3 Advisory, commented: “Particularly noteworthy with this deal is that we were able to complete in just two months – an incredible achievement given typical transaction time usually sits at between three and six months. Working closely with our partners, and strong market connections, we saw the market was ideal for transacting. With the existing insurance already in place, we were able to move very quickly, snapping up the favourable pricing available and resulting in a great outcome all round.”
Sam Roberts, Director of Investment Consulting at Cartwright commented: “We continuously and closely monitor our clients’ schemes so when an opportunity presents itself, we can seize it by acting quickly. This deal was a great example of how things can move very quickly when all parties are aligned, and the preparation has been put in place over the months and years leading up to the transaction. When we were appointed in 2018 there were significant issues over the accuracy of the member data and benefits recorded. This took many months to correct, without which the successful transactions in 2020 and 2021 could not have happened. This preparation, combined with reacting quickly to other investment opportunities along the way – including de-risking funding level triggers and re-risking in March 2020 – put the trustees in the driving seat to achieve their objective much sooner than they had dared hope.”
The Chair of the Trustees commented: “Thanks to everyone involved we were able to move quickly and secure the right outcome for all our members and the company. It’s particularly pleasing because the Trustees and the company were expecting it to take another seven years to get to full buyout. Through Cartwright’s diligent preparation of the member data, proactive and pragmatic investment advice, and relationship with K3, the opportunity was identified and acted on without delay.”
Peter Jennings, Business Development Manager at Just, commented: “We take pride in every deal we complete, but there is something particularly satisfying when clients select you to complete further transactions for them. It’s a strong signal that they like what you do and trust you to get it right for them. So we were delighted the trustees asked us to secure the remaining benefits of the scheme. K3, Cartwright and Just have developed a very efficient method of collaborating that helps us to deliver transactions quickly.”
Legal advice was provided by Shoosmiths
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About K3 Advisory
K3 Advisory is the pension market’s only specialist independent bulk annuity and consolidator advisory business. Using first-hand experience from both the insurance and pensions sectors, K3 Advisory provides trustees and scheme sponsors with advice and brokering services to secure a smooth and effective transfer of liabilities to an insurer or consolidation vehicle.
The business was founded in 2018 with the aim of improving the efficiency of the bulk annuity and consolidation markets for the benefit of all involved. The business is backed by the Vestey Holdings Group, a fourth-generation family business whose origins date back to the 1890s.
See K3 Advisory for more information.
Cartwright is an independent privately-owned pension actuarial, investment consulting, consultancy and administration firm. Established in 1986, with offices in Godalming, Chelmsford, and Farnborough, they provide actuarial and investment advice, pensions consultancy and administration services to over 200 clients; including trustees and sponsors who are seeking to manage their pension schemes effectively and efficiently. Originally formed to fill a gap in the market, their pioneering spirit remains at the heart of the company to this day.
Cartwright have grown by putting clients at the heart of everything they do. They are dedicated to delivering pragmatic solutions, operating with the highest degree of professionalism and integrity. Renowned for not offering a one size fits all service, they specialise in small and medium-size schemes wanting access to expert services and solutions, delivered at a competitive price and with a personal and bespoke touch.
More information can be found on their website: cartwrightbenefits.co.uk
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