Rumours of a new entrant to the defined benefit (DB) superfund market have continued to grow, with industry speculation suggesting that up to four organisations could be waiting to enter the market.

Following industry speculation as to upcoming entrants to the UK DB superfund market, former Pensions Minister, Guy Opperman, said that as many as four industry organisations are thought to be looking to enter the space.

Speaking to the audience as an attendee at Clara Pensions Superfund Summit yesterday (23 October), Opperman stated: “I think the test for the regulator over the next two years, post the Pension Schemes Bill, is whether it can be ‘can do’ in your approach – notwithstanding [there is not yet] the secondary legislation.

“[This is] because you've got four entrants to the market, one American, private-equity backed, and obviously one who shan't be named… and then a variety of other people in the market. If they get utterly bogged down and, frankly, run out of money, capital capability, then I think that does set things back, there's no question.”

Opperman also contrasted the current superfunds developments with the slow speed of superfunds progress during his time as Pensions Minister, due to them being “unquestionably blocked by Treasury and by regulators. I could name the individuals; I could write a book on individual civil servants at Treasury [saying] ‘I will stop this happening, even if it's the last thing I do’, just unbelievable behaviour”.

However, the industry is now at a “tipping point”, for which the Pension Schemes Bill is vital, he stated.

Describing himself as “full of praise for the government", Opperman gave “massive credit to the new government… because without the Pension Schemes Bill, I think you would not get some of the market entrants that are definitely coming in”.

“The practical reality is you’ve now got the Treasury, the Department for Work and Pensions (DWP) and the regulators all lined up. There is a ‘can do’ attitude, rather than a ‘computer says no’ attitude emanating through the various regulatory and government bodies,” he added.

Currently, Clara Pensions is the only superfund to have been assessed by TPR in the UK market, targeting buyout as its end goal.

Earlier this month, however, TPT Retirement Solutions announced plans to launch a superfund designed to support run-on, subject to passing The Pensions Regulator’s assessment, having already secured capital to fund the first £1bn of transactions.

Whilst the exact organisations thought to be waiting in the wings is yet to be revealed, the fact that businesses are looking to enter the superfund market seemed somewhat of an 'open secret' at the event, as whilst industry experts were reluctant to publicly confirm names during sessions, many alluded to an 'unnamed' new entrant, with several industry experts were able to verify these reports when speaking to Pensions Age.

But whether these organisations will actually follow through is yet to be seen, as speaking to Pensions Age after the event, Opperman admitted that "the fact is that there are two or three, if not four, looking at this, they're not necessarily doing it for certain".

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