Scheme Merger & Asset-backed Finance

 

Client

Swedish-owned group (with a business ranging from industrial coatings to fine art supplies).

 

Objectives

  • Merge three in-deficit DB (Defined Benefit) schemes to save costs

  • Provide the new (merged) scheme with a share in an asset to help mitigate deficits and assist the funding plan

Solution

We helped each scheme to establish a sub-committee of non-conflicted trustees.  One of our directors sat on each committee to represent the scheme’s interests and assess the different employer covenants. Our directors helped project manage the merger and made sure that it was completed in a timely and cost effective manner.

 

The asset in which the new (merged) scheme had a share was a fine art brand, housed within a Scottish LLP (Limited Liability Partnership). The brand now provides the merged scheme with an income via a ‘royalty licence’; similar to the way a bond pays out a yield.

Want to know more?

Contact us:

Call: 0845 313 0024