Arco pension transfers £135m 1,281 members to Clara
A UK pension scheme has moved £135 million in assets and 1,281 members to Clara Pension Trust as part of Arco Limited’s sale. The transfer, completed alongside the corporate deal, ensures greater stability for participants while strengthening their long-term financial safeguards.
Clara Pensions framed the agreement as a structured approach that serves both scheme members and the selling company. By taking on the liabilities, the superfund removes a key obstacle for trustees, sponsors, and potential buyers during mergers and acquisitions, where pension obligations often delay or derail transactions. This marks the first instance where Clara has been incorporated into a transfer directly linked to a corporate sale.
Professional advisers guided the process at every stage. The trustees collaborated with XPS for actuarial support, Pinsent Masons for legal advice on pensions, and EY on covenant assessments. Meanwhile, Arco Limited worked with KPMG for actuarial and strategic counsel, Squire Patton Boggs for pension law expertise, and PwC on covenant-related matters.
The transfer grants Arco’s members access to dedicated capital and enhanced benefit protections. Dan Carr, the company’s chief financial officer, stated that member security was a central consideration throughout the sale negotiations. According to KPMG’s early analysis, Clara was identified as the best solution to address concerns while maintaining the transaction’s momentum.
Jo Harris, senior trustee director at Dalriada, described the sale as an opportunity to improve member benefits immediately. Matt Wilmington, Clara’s chief transactions officer, highlighted that the deal balances member interests with the company’s strategic objectives.
This development follows Clara’s earlier transfer of a smaller pension scheme in September. The swift completion of this transaction illustrates a broader trend: superfunds are now regularly considered in merger and acquisition discussions, rather than being treated as a final option. Richard Wellard, head of alternative risk transfer at Hymans Robertson, observed that these funds have become a standard part of conversations about pension scheme futures.
As new providers like TPT enter the superfund market, competition and innovation in the sector are poised to increase. Wellard expects the variety of schemes and scenarios where superfunds are applied to grow as the industry evolves.
