Emanuel Eftimiu speaks to Kelvin Wilson, Associate Director, Grant Thornton about defined pension fund liabilities and what they mean for private equity buyers.

For private equity funds looking to take over companies with defined benefit pension schemes, a number of risks need to be considered. Interest rates, inflation and longevity can all have a major impact on a pension scheme's liabilities, affecting its share price now and in the future.

Fund managers investing in companies with existing pension liabilities may need to examine strategies to de-risk the scheme in order to provide a more secure future for both the company and its scheme members.

Wilson discusses some of the options currently available to firms looking to de-risk their pension liabilities, and examines the benefits these can offer to private equity owners.