Videndum’s transfer to Clara evidences the growing momentum behind the Superfund market
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The transfer of the 500 members and £43m of assets to the Videndum DB Pension Scheme to Clara marks the fifth transaction for Clara and another significant milestone for the Superfund market with a growing number of schemes considering a superfund transfer.
With the Pension Schemes Bill 2025 putting the superfund regime on a statutory footing alongside the announcement of TPT intending to enter the superfund market (with up to three others understood to currently be in TPR’s assessment process), 2026 is shaping up to be a record-breaking year for superfunds.
LCP acted as the Trustee’s actuarial, investment and covenant advisers on the deal, advising the Trustee in assessing the transfer to Clara against TPR’s superfund gateway tests and in providing the actuarial certification required for the transfer to go ahead, as well as advising on all aspects of managing the investment risks of the transaction.
By leveraging our experience of being the lead adviser to Wates on their £210m transfer to Clara in 2025 and our broader market-leading experience of risk transfer transactions, we helped the Trustee navigate the regulatory requirements, manage risks throughout the process, and secure a positive outcome for members.
500 members of the Videndum Scheme and £43m of assets will transfer to the Clara Pension Trust.
As with all previous transactions, Clara will also inject additional ringfenced capital, immediately enhancing the security of benefits for members as they begin their journey to an insured buyout. Members will transfer to Clara shortly, where they will continue to receive their full pension entitlements.
More broadly, the transfer of the Videndum members demonstrates Clara’s continued flexibility and suitability for a wide range of scheme sizes and situations.
LCP are proud to have played a central part in this transaction and look forward to seeing further transfers and new market participants in the coming months.
Having carefully assessed all options, we are really pleased to have guided the Scheme through this process. As trustees, our overriding priority throughout has been the long-term security of members’ benefits. This transaction means that our members’ pensions are secured into the future.
Tom Stockley, Chair of Trustees Aretas Trustees
Helen Abbott, LCP Partner and covenant adviser to the Trustee, commented: "It has been great to bring this insight and experience to advise the Videndum Trustee on this important step for the members of the Videnum Scheme.
"Our work advising the Trustee in assessing the transfer to Clara against TPR’s superfund gateway tests and in providing the actuarial certification required for the transfer to go ahead builds on the support we have provided to Vivendum Trustee across actuarial, covenant and investment advice over many years.
"It’s encouraging to see the widening range of options that are available for trustees and employers to consider when looking at longer term scheme strategy and to have supported the Videndum Trustee in arriving at their decision to transfer to Clara to secure the long-term security of the benefits of their members.”
Building momentum in the superfund market
LCP welcomes the forthcoming relaxation of the current gateway tests for superfund transfer (as legislated for in the 2025 Pension Schemes Bill) and see that this is likely to further increase the momentum in the superfund market, with further superfund market entrants expected over the next year.
Increased choice and flexibility for pension schemes will help to deliver better outcomes for members.
Laura Amin, Partner and Head of DB Consolidation at LCP, commented: “We are proud to have been able to bring our superfund expertise to support the Videndum Trustee building on our work supporting the Wates Trustee in a similar role. This is Clara’s 5th transaction, demonstrating the continued flexibility of Clara’s proposition for a wide range of scheme sizes and situations.
“2026 is lining up to be a pivotal year for the superfund market with the forthcoming legal framework through the Pension Schemes Bill and with around three new providers understood to be working through TPR’s superfund assessment process –with the potential for an even more active and competitive market by the end of the year.
“Clara’s pipeline of active discussions with over 30 schemes is testament to the growing momentum in the superfund market and is in line with the conversations we have been having with both sponsors and trustees who are, rightly, factoring superfunds into their endgame discussions when looking at the range of options available to securely deliver members’ benefits in the long-term.”
