DWS Group acquires minority stake in Smart Pension

DWS Group has acquired a minority stake in Smart Pension for an undisclosed fee.

The two firms also announced their intention to form a strategic partnership that aims to offer investment solutions for Smart Pension Master Trust members.

The transaction has been completed, although both companies have agreed to maintain confidentiality as to the price and other commercial details.

DWS said that its investment will form an integral part of its growth strategy in the UK, whereby it is targeting a “sizeable and high-growth” defined contribution (DC) pensions market.

Commenting on the announcement, DWS Group head of client coverage division and Executive Board member, Dirk Goergen, said: “We are looking forward to delivering on the opportunity to work with an innovative retire-tech disruptor that is fast-growing and well-placed to compete both in the UK and global retirement market.

“Increasingly, DC savers are seeking to diversify their returns across a broader range of asset classes, and we believe that DWS’ asset management capabilities across both private and listed markets means that we are ideally placed to meet their evolving needs.”

Smart co-founders, Andrew Evans and Will Wynne, added that they were “delighted” to announce DWS as an investor in Smart.

“We're delighted by their recognition of Smart's journey to date, and the huge additional opportunity ahead of us in the US $55trn global retirement savings market, means they're joining us as an investor and partner to help fuel our global growth as a wave of legislative change sweeps the world,” they continued.

“Our mission is ‘to transform retirement, savings and financial wellbeing, across all generations, around the world’. With strategic partners like DWS Group, and our existing stable of investors, we are in a great place to continue executing to deliver on that, providing governments, financial institutions, employers and savers across the world with a better financial future.”

DWS Group chief operating officer and Executive Board member, Mark Cullen, concluded: “Acquiring a minority stake in Smart is an exciting investment opportunity for DWS given the outlook for growth in DC pension savings both in the UK and globally.

“We believe that the strength of Smart’s technology platform underpins their current success and that the asset management capabilities of DWS have the potential to help Smart to achieve its global ambitions.”

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