Fintech firm Cushon, the pension and savings firm, revealed on Wednesday (June 2, 2021) that it has finalized a funding round of £26 million in order to finance its business expansion and product development, after its acquisition of a master trust pension scheme.
An additional £20 million in credit facility has been provide by AshGrove Capital, a pan-European specialty lending company, in order to ensure Cushon is positioned for further acquisition and consolidation of other master trust scheme providers, which would allow more savers and investors to take advantage of its Net Zero Now pension scheme.
This recent round should help with the acquisition of Construction First Limited, scheme funder of the Workers Pension Trust (WPT) scheme. WPT is an auto-enrolment MT based in Northern Ireland where it offers support to more than 5,000 workers and over 110,000 professionals with pension investments of £330 million+.
Cushon reportedy acquired the Salvus Master Trust (now called Cushon Master Trust) in 2020 and this recent deal brings Cushon’s assets under management to £740 million and total number of members to 200,000+. This also makes Cushon the sixth-largest Master Trust by number of workers being managed.
Ben Pollard, CEO of Cushon, stated:
“Following our entry into the pensions market last year, and launch of the world’s first net zero pension, we’ve been keen to bring our unique technology-led proposition to as many employees as we can, as quickly as we can. This raise has the right balance of lending and equity to enable us to do just that. We are delighted to welcome the team at WPT to our expanding family and to have the support of such experienced investors to help us continue on our journey.”
This proceeds from the investment round will also be channeled towards supporting more strategic acquisitions, scaling capability and product innovation with improved delivery of enhancements to support workers.
Tim Levene, CEO at Augmentum Fintech, remarked:
“We believe that workplace savings and investments are ripe for disruption and with public policy across Europe increasingly seeking to encourage people to save more, both for their retirement and in general, we believe there is significant opportunity to successfully challenge incumbents. We were impressed by Cushon’s blue-chip client list, world leading stance on climate change and its emphasis on getting people to understand the value of saving through the workplace. It is well placed to win significant market share.”
Phil Fretwell, Co-Founder and Partner of AshGrove Capital, added:
“Cushon has developed disruptive technology enabling it to provide better outcomes for workplace savers, a market that is evolving rapidly and demonstrates clear organic and inorganic growth opportunities. The business model also exhibits strong credit characteristics due to its highly predictable revenue profile and compelling unit economics. Tech-enabled services is a key focus area for AshGrove Capital and in Cushon we have found an opportunity to support a superb management team with a positive sustainability agenda that has built a business which, in our view, is at an inflection point of growth.”
Declan McErlean, MD at Construction First Ltd, noted:
“We are delighted to be joining the Cushon Group. Workers Pension Trust employers and members alike will benefit from the investment, technology, and innovation that Cushon brings to workplace savings. Cushon is a natural fit for our members and employers. We believe this acquisition will allow us to enhance the employer experience and improve member outcomes.”