XPS Pensions Group acquires Penfida Limited

XPS Pensions Group has acquired the entire share capital of Penfida Limited for a total cash consideration of £11.6m.

This includes £7.9m on completion, as well as a contingent deferred consideration of up to £3.7 million, subject to business performance and the continued employment of key employees.

XPS Pensions Group confirmed that the acquisition includes all staff and contracts within the business, constituting a class two transaction for the purposes of the Financial Conduct Authority's Listing Rules.

Penfida, an independent corporate finance and covenant advisor to UK pension funds, was established in 2005, and has clients representing in aggregate in excess of £300bn of assets.

The business will be combined with the existing XPS covenant team and is expected to “significantly” boost capability and provide critical mass, with the acquisition to enable XPS to offer covenant advisory services to a wider range of clients.

Penfida generated profit of £0.9m before tax in the year ended 31 March 2022, with the acquisition expected to contribute to the group approximately £5m of revenue per annum at a 25 per cent adjusted EBITDA margin.

The new unit will be led by the current Penfida management team, including Penfida senior partner, Paul Jameson, with plans to integrate with the wider XPS Group over time.

Commenting on the acquisition, Jameson stated: “We are delighted to be joining the XPS family where the culture and values of the firm align with our own.

"As part of XPS we will be able to continue to provide independent advice to our clients and we will benefit from ongoing investment to enable the combined business to grow and thrive into the future.”

Adding to this, XPS Pensions Group co-CEO, Paul Cuff, said: “Penfida is a business that we have known and admired for a long time. We have seen first-hand the high-quality service they provide when we have worked on clients we have in common.

"We are excited to welcome their fantastic team. Their expertise complements our existing strong and growing covenant business and means we can offer a market leading service to current and future clients across the entire spectrum of services that they need.”

    Share Story:

Recent Stories

Making pension engagement enjoyable through technology
Laura Blows speaks to Nick Hall, business development director and Chartered Financial Planner at UK-based Wealth Wizards about the opportunities that technology provides for increasing people’s engagement with pensions and increasing their retirement wealth. Please click here for an edited write-up of the video

ESG & DC – creating the right tools
In the latest of our series of Pensions Age video interviews Francesca Fabrizi, Editor in Chief of Pensions Age is joined by Manuela Sperandeo, Head of Sustainable Indexing EMEA, BlackRock and Mark Guirey, Executive Director, Asset Owner and Consultant Coverage - MSCI to discuss some key trends of ESG investing among UK pension funds today. Please click here for an edited write-up of the video

Savings and finance at retirement
Laura Blows is joined by Claire Felgate, Head of Global Consultant Relations, UK, at BlackRock, to discuss savings and finance at retirement. Please click here for an edited write-up of the video

Global sustainable credit
Laura Blows speaks to Royal London Asset Management senior fund manager, Rachid Semaoune, about global sustainable credit
Global equities and transition investing
Pensions Age editor, Laura Blows speaks to Royal London Asset Management equity investment director, Jonathan Price, about transitioning to sustainable investments within global equities

Advertisement Advertisement Advertisement