SEI acquires National Pension Trust

SEI has completed the acquisition of XPS Pensions (Nexus), principal employer and scheme funder of the National Pension Trust (NPT), from its parent company, XPS Pensions Group.

The deal was first announced in July 2023 and has now received regulatory approval for the £42.5m transaction to go ahead.

A strategic partnership between the two firms was created through the deal, with XPS to continue to support the NPT with pensions administration and consultancy to help ensure continuity of service, as well as provide wider support to the SEI Master Trust in the future.

The total cash consideration of £42.5m comprises of a £35m initial consideration upon completion and a deferred earn-out consideration of up to £7.5m based on business performance two years after completion.

Proceeds from the transaction will be used to partially repay XPS Pensions Group's debt facilities.

Founded in 2009, NPT holds around £1.4bn in assets, with the total combined assets of NPT and the SEI Master Trust following the acquisition estimated to be around £3.4bn.

SEI stated that the acquisition reinforced its commitment to the institutional markets, including the UK defined contribution (DC) market, and that the addition of NPT to the SEI Master Trust strengthened its “delivery of best-of-breed services at scale with better member outcomes through retirement and beyond”.

Commenting on the acquisition, SEI Institutional managing director of DC, EMEA and Asia, Steve Charlton, said: “Two years ago we shared our ambition for the SEI Master Trust to become the market-leading master trust with the size and scale to deliver stability and help members be more confident that their financial futures are secure. We believe our acquisitions of the National Pensions Trust and the Atlas Master Trust in 2021 bring us closer to those goals.

“Industry consolidation, supported by The Pensions Regulator, reduces the number of smaller and sometimes less resilient schemes, bringing greater stability to the pensions landscape. Greater stability can strengthen propositions, and we believe our proposition has gone from strength to strength. Employers choosing the SEI Master Trust and their employees will benefit from this greater stability.

“We’re thrilled to welcome the NPT colleagues and a trustee to the SEI team. We also look forward to working with XPS in serving our collective clients and delivering high-quality administration, improved investment outcomes, and confidence for members that we are here to stay.”

XPS co-CEO, Paul Cuff, added: “Everything we do is centred around helping members of pension schemes receive the best outcomes and security in retirement. This goal has underpinned the operation of National Pensions Trust for many years, and it is a high-quality master trust that serves our clients, and most importantly, the members, very well.

“Against the backdrop of an evolving and consolidating market, we have sought a long-term strategic partner with whom we can each bring the best of what we do. We’re excited to continue supporting members with pensions administration and consultancy through our strategic partnership with SEI—reinforcing our shared commitment to ensuring continuity of service and stability for members.”

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