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JP Morgan invests in Pension Corp

Pension Corporation has secured investment from JP Morgan and launched a second-round of fundraising to raise £300-400m.

The pension buy-out firm will acquire assets and key members from annuity provider Synesis Life, which is backed by JP Morgan as well as the Royal Bank of Scotland and Warburg Pincus.

Pension Corporation refused to disclose how much the investment bank pumped in but says the funding will improve its ability to handle pension enquiries.

The second-round of fundraising will be offered to current investors then marketed to new investors in the first half of 2009.

Pension Corporation says the cash will be raised at a premium on terms that reflect the firm’s “robust foundations”.

Pension Corporation chief executive Edmund Truell says: “The pension risk transfer market is growing rapidly. The extra capital we are raising, led by JP Morgan, will extend our capacity to take market share in areas with the right balance of risk and reward. This significantly increases our ability to play a leading role in addressing the historic legacy of defined benefit pension liabilities, which amount to more than twice the size of the UK’s national debt and nearly equal the country’s total gross domestic product.”

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