Pensions provider Cushon more than doubles size with Creative Pension Trust takeover
Fri, 21 Jan 2022 | BUSINESS SALE
Pensions provider Cushon has more than doubled its assets under management and customer base with the acquisition of the Creative Pension Trust auto-enrolment scheme. The deal, Cushon’s third acquisition since 2020, takes the firm to over 400,000 customers and more than doubles its assets under management (AUM) from £840 million to £1.7 billion.
The acquisition, for an undisclosed amount, was financing by a £35 million fundraising provided entirely by the company’s existing investors, which include specialty lender Ashgrove Capital and fintech-focused venture capital firm Augmentum Fintech.
The new funding round brings Cushon’s total financing raised in the last two years to £61 million. In addition to the Creative takeover, the funding will be used to scale Cushon’s operational capabilities and to invest in product development and new technology.
The Creative Pension Trust is used by around 14,500 employers, with the acquisition meaning that Cushon becomes the UK’s fifth-largest master pension trust provider by employer count. The deal is Cushon’s third acquisition of a pension master trust, following its takeover of the Salvus master trust in 2020 and the Workers Pension Trust in Northern Ireland last year.
Cushon, which was founded in 2014 and says it is looking to be at the forefront of “a tech-revolution of UK pensions”, provides pension and savings services through a mobile app. The app offers users highly personalised pensions solutions and eco-conscious investments.
The UK’s master trust pensions market has experienced rapid growth over the past decade, with membership of non-hybrid defined contribution master trusts increasing from 270,000 in 2012 to more than 18.6 million last year. As of March 31 2021, the Pensions Regulator says there are 38 authorised master trusts serving this membership, with more than £52.7 billion in assets.
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