The team at Cushon notes that they’re pleased to confirm that they have, subject to Financial Conduct Authority (FCA) approval, acquired Creative, the manager of the Creative Pension Trust. Once approved, this acquisition sees Cushon become the United Kingdom’s 5th largest “master trust provider.”
As mentioned in the update, this is the firm’s third master trust acquisition in just two years which is in line or consistent with regulatory objectives to promote “further consolidation in the market.” The deal should bring Cushon’s total assets under management or AUM (including ISA savings) to more than £1.7 billion with annual inflows “of circa £300 million.”
Cushon further notes that it finalized a £35 million round and announced its third acquisition.
The £35 million was provided by Cushon’s existing investors, including Fintech VC Augmentum Fintech Plc, and AshGrove Capital, an independent pan-European specialty lending company. Other firms in Augmentum’s portfolio reportedly include Tide, Interactive Investor and Habito.
As noted in the announcement, it’s yet another key landmark in their journey to “create a better financial future for everyone, enabling more savers and investors to benefit from our net zero pension scheme as well as our intuitive app and automated investment monitoring service, CushonMe.”
The past couple years have been “phenomenal” for them and they’re keeping this momentum going as they start 2022. Since 2020, they have secured £61m to support ongoing growth, introduced the world’s first “net zero pension,” increased investments in environmental and social impact projects, and “made three acquisitions – the Salvus Master Trust, the Workers Pension Trust and we are now delighted to be welcoming Creative.”
The acquisition of Creative not only “doubles the reach” of Cushon’s net zero, technology-led pension to more than 400,000 members but also “incorporates the talent, expertise and credibility of the Creative business on our journey to increase positive interest and engagement with savings and pensions.”
The deal was “supported by a further fundraising round, raised entirely by our existing investors, which also provides additional growth capital to support our ambitious scaling plans,” the update noted.
The UK pensions market is reportedly the “third largest in the world – with a total of £2.58 trillion invested – and the way people’s money is invested has a significant impact on society and the environment.”
The average UK pension finances around “23 tonnes in CO2e every year, roughly equivalent to 5 family cars.” Cushon plans to have “a positive impact on society by making saving and investing through the workplace more convenient, better value for money, and with a clearer connection to the impact people’s money is having on the world.”
Ben Pollard, CEO and founder of Cushon, stated:
“Our mission is to offer UK savers a convenient, climate-friendly, and great value way to save, through a combination of cutting-edge technology and socially responsible investments. Right now, workplace pensions are simply too complicated, boring, and disconnected from things people care deeply about. Cushon is here to change that, and today’s announcement is a hugely significant milestone for us. The funding will continue to fuel Cushon’s growth, enable us to scale even faster, and accelerate some exciting new features within our app.”
Ben added:
“It will also support the acquisition of Creative which not only doubles the reach of our app-first climate-friendly pension, but also incorporates the talent, expertise and credibility of the Creative business. This is another momentous step on our journey to ensure millions of people across the UK have the ability to access innovative workplace savings solutions in the palm of their hand, together with a right to feel optimistic for the future they are helping to build via their investments.”
Sally Webber, CEO at Creative, remarked:
“With more and more customers looking to use technology to manage their pension, and a heightened focus on the environmental and social impact of investments, joining the Cushon group will allow us to ensure our customers’ interests are both considered and protected. Our employers and customers alike will benefit from Cushon’s wider workplace savings offering and its innovative, technology-led approach – unlike any other workplace savings provider in the market. We are excited to become a part of the Cushon Group, enhancing the offering for both our employers and customers.”