The James Neill Pension Plan has completed a capital-backed investment (CBI) transaction with Portunes Pension Capital, marking the second deal of its kind in the UK pensions market.

Under the structure of the deal, the scheme and Portunes will invest alongside one another over a defined period, with the scheme receiving a senior-ranking payout backed by external capital.

CBIs offer schemes access to external capital, aiming to reduce investment volatility and accelerate long-term funding objectives.

The transaction aims to support the scheme’s long-term funding objectives while enabling it to keep its existing investment strategy.

The previous CBI pension transaction was completed in 2020, with an unnamed UK pension scheme securing member benefits using capital provided by a third-party investor.

The trustee of the James Neill Pension Plan and the scheme sponsor James Neill Holdings were provided with legal advice from Burges Salmon as part of a wider adviser team.

This team included Fieldfisher as legal adviser to Portunes, Redington (Gallagher Re) as investment adviser to the trustee, and Schroders as investment manager.

Additional advice was provided to the trustee by Carey Olsen and to Portunes by Ogier.

“The successful completion of this transaction represents an important step forward for the plan and demonstrates the value of innovative funding solutions in today’s pensions landscape,” commented Aretas Trustees partner and chair, Anthony Miller.

“We are grateful to Burges Salmon for their clear, pragmatic advice and strong understanding of the sector throughout the process.”

Burges Salmon partner, Clive Pugh, added: “This transaction highlights the increasing maturity of capital-backed solutions in the UK pensions market and the important role they can play in helping schemes manage risk while maintaining investment flexibility.

“We were delighted to support the Trustee of the James Neill Pension Plan and James Neill Holdings Limited on this complex and innovative transaction, working closely with all parties to deliver a structure that meets their long-term objectives.”

This article was first published on our sister website, Pensions Age.

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