Fieldfisher supports Portunes Pension Capital deal

Fieldfisher has announced its role in advising Portunes Pension Capital on a significant capital backed investment transaction with the James Neill Pension Plan. Represented by Aretas Trustees, this transaction is only the second of its kind in the UK pensions market. The legal team from Fieldfisher was led by partner Sebastian Reger, with key contributions from Director Alex McCabe and Trainee Solicitor Rida Ahmed, providing comprehensive legal advice throughout the process.

This transaction builds on Portunes’ innovative capital backed journey plan transaction, known as the Nova transaction, which was completed in 2020. It signifies another important step in the evolving landscape of capital backed funding transactions for defined benefit pension schemes. Sebastian Reger noted that this transaction is indicative of the increasingly sophisticated solutions emerging for pension risk management, stating “Capital backed funding transactions can be tailored to meet the specific needs of individual pension schemes.”

The distinctive structure of the recent deal allows the James Neill Pension Plan to maintain its existing illiquid asset portfolio, reducing the necessity for potentially destructive asset sales while supporting the Scheme's Liability Driven Investment (LDI) strategy. Specifically designed to meet the plan's funding and investment targets, the arrangement ensures that both Portunes and the Scheme invest alongside each other over a defined period. At maturity, the Scheme is set to receive a senior-ranking payout up to an agreed return, supported by Portunes' capital infusion.

Antony Miller, Chair and Professional Trustee at Aretas Trustees, expressed satisfaction with the completion of this landmark transaction, saying “Capital backed transactions come in different guises and represent an exciting development in the pensions landscape, offering schemes a compelling blend of downside protection and upside potential.” He further suggested that successful transactions like this and the Nova transaction highlight the growing maturity and viability of capital-backed solutions in modern pension strategies.

Fieldfisher continues to position itself as a key advisor in the pensions sector, utilising its extensive experience with a team dedicated to supporting trustees, employers, insurers, and financial institutions. The firm’s expertise encompasses a wide variety of pension matters, including funding, investment arrangements, regulatory compliance, and innovative de-risking solutions, reflecting their commitment to enhancing the UK's pension market.