Eversheds Sutherland advises on UK’s third pension superfund transaction

The Wates scheme’s £200m assets will now come under Clara’s management. Wates and Clara will also make a significant investment to improve the security of the Wates members’ benefits.

This transaction is Clara’s first with a sponsor that will continue as an ongoing business, enabling Wates to focus on its business operations, with the confidence that members will be fully supported by Clara.

The global law firm previously advised the Clara Trustee on the UK’s first superfund transaction in November 2023 (Sears Retail Pension Scheme) and its second superfund transaction in March 2024 (for the Debenhams Retirement Benefits Scheme).

Clara operates a “bridge to buyout” model, whereby transferring schemes are placed in ringfenced sections of the Scheme, and additional capital from Clara’s investors (led by Sixth Street) – are provided as a funding buffer. The ultimate aim is to secure member benefits in full via a buyout with an insurance company.

Eversheds Sutherland advised the Clara Trustee throughout the transaction process. The team was led by Partners Emma King and Jeremy Goodwin, supported by Legal Director James Ellis and Associate Emma Shepherd (all pensions).

Commercial advice on the transition of administration services was provided by Partner Simon Lightman and Associate Rawan Saraireh, while Partner Lorna Doggett and Senior Associate Carolyn Sullivan advised on the data privacy elements.

Emma King, Partner at Eversheds Sutherland, commented:

“Congratulations to the whole Clara team on concluding its third transaction. This milestone moment demonstrates Clara’s continuation of its pioneering work.”

James Ellis, Legal Director at Eversheds Sutherland, commented:

“We are delighted to have advised the Clara Trustee on its third transaction. This is another landmark moment for Clara and the pensions industry - the UK’s first pension superfund transaction with an active sponsor. This transaction demonstrates Clara’s broadening appeal as schemes continue to look for creative solutions to enhance the security of their members’ benefits.”

Alan Pickering, Chair of Clara Trustees Limited, commented:

“We continue to be grateful for the excellent support provided by the Eversheds Sutherland team, the Clara team and their own advisers, all of whom have worked collaboratively to deliver this transaction. We look forward to continuing to work with Eversheds Sutherland on our ever-growing pipeline of work.”