Legal & General Investment Management has purchased a stake in Smart Pension, a startup that provides auto-enrolment pensions to small businesses.
The deal will see pension schemes operated through Smart Pension granted access to a range of exclusive LGIM defined contribution pension funds. Prior to the deal, Smart Pension already used LGIM funds, but a spokesperson said the deal would shore up the relationship, and offer Smart Pension access to a wider range of LGIM funds.
Emma Douglas, head of LGIM’s defined contribution pensions business, will also take up a non-executive seat on the Smart Pension board.
The size of the stake has not been disclosed by LGIM due to corporate policy, but will be revealed in the firm’s next results figures. Nonetheless, a source close to the matter suggested to Funds Europe it exceeded the £3 million raised in Smart Pension’s last funding round.
They added there was “no suggestion” that the deal would lead to a full merger between the firms, and Smart Pension would remain a fully independent entity.
©2016 funds europe
