October 15, 2020
Wilton Re is a global reinsurer that specialises in providing M&A solutions for life insurance and related markets. Its industry expertise and long-term investment horizon make Wilton Re a strong additional partner for Clara’s business.
Adam Saron, CEO of Clara-Pensions, said: “Wilton Re’s investment represents a clear vote of confidence in consolidation, the Pension Regulator’s regulatory regime and Clara’s member-first model. With the combined support of Sixth Street and Wilton Re, now more than ever, I am confident that Clara has the resources required to support members on their journey to buy-out. We look forward to completing the Pension Regulator’s rigorous assessment and welcoming our first members.”
Chris Stroup, Chairman of Wilton Re’s Board of Directors, said: “We have tremendous respect for the work that Adam and his team and Sixth Street have completed thus far in preparing Clara to succeed. We’re delighted to invest in Clara’s member-first model and look forward to working further with the Clara team alongside Sixth Street.”
Clara’s consolidation model serves as a bridge to the insured market for Britain’s defined benefit pension schemes and their members. When a scheme enters Clara, its assets and liabilities are supported by capital from Clara’s capital providers, thus securing a lower-risk journey to buy-out. Only after Clara has fully secured promised benefits for its members is there any return to its capital providers.
The closing for Wilton Re’s initial capital funding is subject to customary antitrust approvals and is anticipated to occur in the fourth quarter of 2020.
Clara were advised in this transaction by Houlihan Lokey.
Sixth Street is a global investment firm with approximately $47 billion in assets under management and committed capital. Sixth Street operates eight diversified, collaborative investment platforms across our growth investing, adjacencies, direct lending, fundamental public strategies, infrastructure, special situations, agriculture and par liquid credit businesses. Our long-term oriented, highly flexible capital base and “One Team” cultural philosophy allow us to invest thematically across sectors, geographies, and asset classes. Founded in 2009, Sixth Street has more than 275 team members including over 140 investment professionals operating from nine locations around the world. For more information about Sixth Street, please visit www.sixthstreet.com
Wilton Re is a leading provider of in force and reinsurance solutions in the North American life insurance industry. With our proven experience, we create customized solutions that address the capital and operational needs of our clients. For more information about Wilton Re, please visit www.wiltonre.com