UK - Truell eyes pension liabilities, FT reports

Truell is expected to announce later this month that he has raised about £400m, which would allow him to take on about £4bn of pension fund liabilities. However, the venture is believed to be aiming eventually to take on a higher level of liabilities. Truell is expected to raise money from many of the external investors who have backed Duke Street's funds, although his new vehicle will be separate from the private equity group.

It is expected, however, to use the administrative capabilities of Xafinity, formerly Hogg Robinson's benefits and consultancy services division, which Duke Street acquired last April. Truell is believed to be looking to take on the assets and liabilities of defined benefit pension schemes, as well as all the associated administration. Schemes will need to be fully funded, or be committed to becoming fully funded within a short space of time. Truell is aiming to differentiate his vehicle from others lining up to take advantage of this fast-growing market by building a team that will provide the full spectrum of services, including management of liabilities, asset management and administration.

The team is expected to include his brother, Danny Truell, who retired last summer as managing director of Goldman Sachs Asset Management, and is now chief investment officer for the Wellcome Trust.

The move is a further indication of impending competition for life assurers Prudential and Legal & General, which currently control the lucrative bulk annuity market, whereby companies pay insurers a premium for taking on their pension commitments.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• UK / Ireland