Pension Funds

U.K. Pension SuperFund CEO to depart after less than a year; early investor withdraws

Warburg Pincus helped seed the DB fund consolidator but will no longer continue to finance

CEO Alan Rubenstein and Marc Hommel, head of origination, will imminently depart from the Pension SuperFund, a consolidator of U.K. defined benefit funds, a spokeswoman said.

The spokeswoman confirmed successors to Messrs. Rubenstein and Hommel's will be appointed but declined to provide details or comment on reasons for their departure.

Mr. Rubenstein was not available to discuss his departure. Before taking on the role at the Pension SuperFund, Mr. Rubenstein was CEO of the 23.4 billion ($30.3 billion) Pension Protection Fund until January.

The Pension SuperFund was seeded by Warburg Pincus and Disruptive Capital Finance in March with an initial 500 million ($648 million) investment and it was targeting 20 billion worth of assets, subject to receiving clearance from the U.K. regulator. To date, the Pensions Regulator has not yet endorsed any acquisitions of pension funds.

"We have been in discussions with the defined benefit SuperFund to understand the business model," a TPR spokesman said, declining to comment further.

Disruptive Capital Finance will continue to finance the business, according to a news release. However, Warburg Pincus will withdraw from the business, while retaining a right to reinvest in the future. The Pension SuperFund spokeswoman confirmed the seed money will remain invested.

"The Pension SuperFund is in a position where it is poised to see its first deal submitted to the Pensions Regulator," Edi Truell, chairman of Disruptive Capital and the Pension SuperFund's co-founder, said in a news release. "Businesses that are constrained by their pension liabilities have a fundamental need to find a more affordable way to fulfill their promises to pension fund participants, and the positive response to the Pension SuperFund showcases the role consolidation can play in meeting that need and in providing a solution to the pressing issue of funding DB funds. We will now build on all the positive progress made and look forward to announcing the first pension transfers into (the fund)."