Standard Life plc announced a strategic partnership with CVC Capital Partners and Prudential Financial, Inc. (PFI) of the US, alongside Goldman Sachs Group, MS&AD Insurance Group Holdings, and other long-term institutional investors to expand its Pension Risk Transfer (PRT) business.

The consortium plans to support schemes across a broader range of sizes, including the largest and most complex defined benefit (DB) schemes, subject to regulatory approval.

The partnership will be funded by a combined initial capital commitment of up to £2 billion, expected to be drawn over five years, including £500 million from Standard Life, with the balance from the consortium, which is led by CVC and PFI.

“The partnership combines Standard Life’s leading PRT capabilities with CVC’s, PFI’s and Goldman Sachs’ global private markets asset origination, enabling Standard Life to deliver its compelling employer proposition and excellent customer service to a broader range of pension schemes, while retaining full operational control of the partnership,” said Standard Life.

Standard Life CEO Andy Briggs said: “We are delighted to announce the expansion of our PRT business in partnership with a group of internationally recognised financial institutions, who are committing global capital into the UK PRT market.

“For over 200 years, Standard Life has supported people across the UK to plan for and secure their retirements, and this focus and commitment remains central to our strategy today.

“By bringing together our comprehensive PRT capabilities with our partners’ specialist private markets capabilities and significant capital resources, coupled with a trusted and well-known brand in Standard Life, we will be able to offer trustees and sponsors for the largest pension schemes an alternative to secure the pensions of their members across the UK.

“This partnership further accelerates Standard Life’s vision to become the UK’s leading retirement savings and income business.”