Pensions risk and investment management firm Cardano Group has agreed to acquire workplace pension provider Now: Pensions.
Cardano Group, which previously acquired covenant advisory organisation Lincoln Pensions in October 2016, will acquire 100% of Now: Pensions from Danish pension fund Arbejdsmarkedets Tillaegspension (ATP). This is due to complete later in 2019, after Now: Pensions has been authorised by The Pensions Regulator (TPR) as part of the ongoing master trust authorisation process.
Now: Pensions is the UK’s third largest auto-enrolment provider, serving more than 30,000 organisations and 1.7 million pension savers.
Following completion of the acquisition, Now: Pensions predicts transferring its investment management mandate from Now: Pensions Investments (NPI) in Denmark to Cardano Group’s UK-based fund management team, subject to due diligence by the trustee.
The acquisition has been designed to combine Cardano Group’s investment expertise in the defined benefit (DB) and defined contribution (DC) markets with Now: Pensions’ auto-enrolment platform and administration capabilities. This will create a full-service platform which can accommodate an evolving pensions market, such as multi-employer master trust environments.
The acquisition will award Cardano Group over £25 billion of assets to manage, and the business will employ 350 staff across its core markets in the UK and Netherlands.
Theo Kocken (pictured) and Michael De Lathauwer, co-chief executive officers at Cardano Group, said: “In a short space of time, Now: Pensions has grown to become one of the leading players in the auto-enrolment market. Bringing Cardano and Now: Pensions together is transformational for our group. It is an investment in the future of UK pensions, enabling us to grow and diversify our client base. We believe our combination of pensions risk management and investment skills, together with Now: Pensions’ enormous potential creates a new force across the UK pensions landscape.”
Troy Clutterbuck, chief executive officer at Now: Pensions, added: “In Cardano, we have found a like-minded organisation with a long-term commitment to the UK pensions market that offers a great fit with our business. Workplace pensions in the UK are gathering greater momentum as the auto-enrolment regime matures. Being part of the Cardano Group will bring significant benefits for our clients and members, giving us a fantastic platform to reach our full potential.”
Nigel Waterson, chair of the trustee at Now: Pension Trust (NPTL), said: “This is an exciting time in the development of Now: Pensions. As well as gaining access to their expert investment team, our members will benefit from Cardano’s wealth of experience in technology and aligned commitment to good governance.”
