Osborne Clarke advises Clara-Pensions on agreement to transfer members from the Wates Pension Fund

Clara-Pensions (Clara), the member-first consolidator for defined benefit pension schemes, the Wates Group (Wates) and the Trustee of the Wates Pension Fund (the Fund), have reached agreement on the UK’s third superfund transaction. This represents the first superfund transaction conducted with a scheme with an active sponsor, paving the way for many more companies to successfully transfer their pension liabilities while enhancing member security.

The 1,500 members of the Fund and the scheme’s £200m in assets will now come under Clara’s management where members will continue to receive their pension entitlements.

International legal practice Osborne Clarke advised Clara-Pensions. The team was led by head of pensions, Jonathan Hazlett working alongside Toby Hole (pensions), Eric Edwin (funds) and Elizabeth Shanahan (tax).

Under the terms of the transaction, Wates will contribute an additional £19m of funding to support the scheme in the form of a one-off payment and Clara will provide additional capital to enhance the security of members’ benefits. As a family-owned business, Wates, together with the Wates Trustee, is committed to ensuring its members are fully cared for under Clara and will have increased certainty they will receive their pension entitlements. Under Clara’s model, members ultimately transfer to an insurer through a buy-out process after spending 5-10 years with Clara.

This is the first superfund transaction to be completed by an active business and demonstrates the wide range of schemes which can benefit from the Clara solution. With a strong pipeline of potential deals, with schemes that have liabilities of over £5bn, this transaction reflects Clara’s continued evolution as the business adds to its existing 20,000 members and £1.2bn of assets under management.

Clara continues to be backed by global investment firm Sixth Street. The Clara Trustees are supported by pensions consultancy Hymans Robertson; fiduciary managers Van Lanschot Kempen and State Street; and legal firm Eversheds.

Wates was advised by PwC and CMS, while the Trustee of the Fund was advised by LCP, Macfarlanes and Cardano.

Ranked as a top tier firm by legal directories including the Legal 500 and Chambers UK, Osborne Clarke's pensions team advises on all aspects of pensions law and practice. The team specialises in pensions risk transfer work including securing members' benefits with an insurance company as well as superfund transactions, having advised the trustees of the Debenhams Retirement Scheme on its transaction with Clara in 2023.