Investment and risk specialist Cardano Group has agreed to acquire independent advisory firm Lincoln Pensions.
Lincoln Pensions specializes in advice about pension fund covenants — the sponsoring employer’s legal obligation and financial ability to support a defined benefit fund.
Terms of the deal were not disclosed, said a spokesman for both companies. Cardano will purchase Lincoln Pensions from middle-market investment bank Lincoln International, the majority owner of the firm. The spokesman added that stakes were not disclosed.
Lincoln Pensions will continue to operate independently, with the same management and team. Senior management will retain direct minority ownership in Lincoln Pensions, and its advisory board will continue to be independently chaired by Tony Hobman, who was previously CEO at The Pensions Regulator in the U.K.
The deal will improve Cardano U.K.’s investment advice and management, by embedding covenant risk within strategies, a news release said. Lincoln Pensions will more fully incorporate investment risk and economic scenario testing within its advice, giving clients a better understanding of their risk tolerance levels, and correlations between their assets and the operations of their sponsoring employer.
“Both businesses were founded on the same principles of better understanding and managing different types of pensions risk to deliver safer and better outcomes for their clients,” said Theo Kocken and Michael De Lathauwer, co-CEOs of Cardano, in the news release.
Darren Redmayne, CEO of Lincoln Pensions, added that under the deal, Lincoln Pensions “will be better able to assist its clients in managing” challenges such as falling gilt yields.
The combined business will have more than 200 staff members across offices in London; Leeds, England; and Rotterdam, Netherlands.
Cardano and Lincoln Pensions will also work with Lincoln International under a new strategic partnership, providing integrated risk advice in mergers and acquisitions, and related corporate situations that involve pension funds.
Cardano also provides outsourced CIO services to pension funds.