Master trust consolidation continues as Cushon buys Creative
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Cushon, the investment platform that runs a defined contribution master trust, said it is buying Creative, the funder of the Creative Pension Trust, doubling its size.
The deal brings Cushon’s total customers to 400,000 and assets under management, including ISA savings, to around £1.7bn, with annual inflows of more than £300m, according to Cushon.
The acquisition is Cushon’s third in two years, out of four in the workplace pensions market, it said, pointing to the government's goal to drive consolidation. It bought Belfast-based Workers Pension Trust in 2021, having previously acquired Salvus Master Trust. Pensions minister Guy Opperman welcomed the acquisition in a recent social media post.
Cushon becomes one of largest master trusts
The 14,500 additional employers currently in the Creative Pension Trust catapult Cushon up the size tables to fifth-largest master trust. The provider has tried to differentiate itself by offering a pension that is net zero now rather than at a point in the future.
The deal was funded through another fundraising round with existing investors AshGrove Capital and Augmentum Fintech. Last year, Cushon said it had raised £26m to fund a programme of rapid expansion.
“The funding will continue to fuel Cushon’s growth, enable us to scale even faster, and accelerate some exciting new features within our app. 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," said Ben Pollard, CEO and founder of Cushon.
Sally Webber, CEO at Creative, added: “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."
