TPG Sixth Street Partners (TSSP) plans to invest £500m in DB pension consolidator Clara-Pensions and become its provider of long-term capital.
TSSP has committed an initial £225m, which is expected to increase to £500m as Clara-Pensions "grows to scale".
Following this investment, Clara-Pensions is ready to accept its first pension scheme members, subject to applicable regulatory approvals.
Strong, patient capital is “key” to its model for “securing members pensions”, according to Clara-Pensions CEO, Adam Saron.
He continued: “Finding the right partner to provide this has been a careful, crucial journey and TSSP fulfils exactly the criteria we have been looking for. Its track record and commitment to long-term capital investments chime perfectly with Clara’s aims.”
The superfund’s ambition is to consolidate at least £5bn of pension liabilities over the next five years.
It aims to act as a bridge for members from their current company sponsor to the insured market.
Saron concluded: “Today is another significant milestone for Clara and our future members. We now look forward to welcoming our first pension members and beginning their journeys to a safer, insured future.”