FSD successfull onboards Sofotec GmbH via a Pension Liability Transfer (PLT). The transaction was closed by the end of 2024. It was carried out by taking over the German entity in its entirety, which will be managed by FSD as a pensioner company. The Sofotec takeover represents the eighth successfully completed pensioner company transaction for Funding Solutions.
The pensioner company sets high standards of duty of care. It employs an external CTA trust and FSD as a professional run-off platform for sustainable and stable administration of the pensioner company. The pension liabilities are fully funded, with assets held securely within the external CTA. Investment management is carried out via a regulated special fund. Investment management is carried out via a regulated special fund. It is managed by an external international investment Company exclusively for FSD, in line with investment guidelines defined by joint experts. FSD receives an ongoing administration fee for taking over the company and receives an alignment fee only if the CTA assesses that the pensioner company has demonstrably performed well.
About FSD
Funding Solutions was founded in 2018 by pension and investment experts as a Pension Risk Boutique. Today, Funding Solutions serves numerous multinational corporations (MNCs) in structuring, managing, and monitoring their pensions and investment landscape.
Funding Solutions has further developed the concept of pension risk transfers, established in the Anglo-Saxon world as Pension Buyout, for Germany. FSD realized the largest commercial Pension Buyout transaction to date using a pensioner company. Funding Solutions has taken over pension commitments of more than EUR 320 million from industrial, service and medical companies as well as from the regulated banking industry.
If you would like to learn more about how FSD can support you with your corporate pensions, please contact us or visit www.fundingsolutions.de.