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Cardano Group to buy covenant adviser Lincoln Pensions

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Cardano Group is buying Lincoln Pensions, the UK’s largest independent covenant advisory firm.

The combined business will employ more than 200 professionals across three offices – in London, Leeds and Rotterdam – with expertise in risk management, investment advisory, fiduciary management and covenant advice.

Lincoln Pensions will continue to operate independently but as part of the Cardano Group, with the same management and team.

The transaction is being described as allowing Cardano UK to better “deliver tailored investment advice and management by embedding covenant risk within its strategies to achieve even more robust and stable results”. 

Theo Kocken and Michaël De Lathauwer, co-chief executives at Cardano, said: “Going forward, the combined firm will be well placed to develop tailored services that assist clients and the wider market in appropriately balancing [different types of pensions] risks.”

The companies noted that the acquisition came at a time when the UK pensions regulator was advocating “Integrated Risk Management”, whereby the level of investment risk is directly related to the strength of the sponsor’s covenant and employer contributions.

Darren Redmayne, chief executive at Lincoln Pensions, said UK defined benefit pension schemes were facing severe challenges, with further quantitative easing and lower Gilt yields having “made a bad problem even worse”.

“The only way forward is for schemes and sponsors to work together on risk-based solutions that deliver safer financial futures,” he said.

“By joining the Cardano Group, Lincoln Pensions will be better able to assist its clients in managing these challenges.”

A new strategic partnership was also announced today, under which Cardano and Lincoln Pensions will work with Lincoln International, the former majority owner of Lincoln Pensions, to provide integrated risk advice in M&A and related corporate situations involving pensions schemes.

Cardano was founded in The Netherlands in 2000 and established operations in the UK in 2007.

It offers advisory and fiduciary management services for pension funds. 

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