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Alternative Funding Solutions

Finding and implementing the right solution for your scheme, from ABCs and CBJPs to escrows and more.

Benefits of our approach

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Experience implementing 70+ Asset-Backed Contribution arrangements

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Hands-on knowledge executing Capital Backed Journey Plans

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A track record of developing innovative solutions

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Clear, comprehensive advice including accounting and tax

Funding that fits.

Aligning your scheme’s journey plan with the right funding solution can be transformative, increasing efficiency and reducing overall funding costs. The choice can be overwhelming, however.

At Isio, we’re relentless in finding the most appropriate option for you and scheme members. Our deep insight and independence allow us to develop or select the arrangement that suits you best. And if the right solution doesn’t yet exist, we’ll build it for you.

We work collaboratively, both implementing and advising on a range of alternative funding solutions, including Asset-Backed Contributions (ABCs), Capital Backed Journey Plans (CBJPs) and escrows.

How we’re helping clients

While our approach will be tailored to each client’s circumstances, we’re currently seeing particular interest in the following areas:

  • Reviewing existing ABC arrangements, especially where there are ‘bullet payments’ due. We ensure they remain fit-for-purpose and restructure those that aren’t.
  • Implementing escrow arrangements either as part of funding negotiations, mitigation for corporate transactions or as part of a journey to buy-in/buy-out. 
  • Exploring CBJPs as an alternative to insurance, to achieve a particular funding outcome or to enhance sponsor covenant where the current sponsor may be weak.

Looking at ways for sponsor and scheme members to benefit by running on the scheme rather than targeting buy-out. We put appropriate downside protections in place using the range of alternative funding solutions.

A pathway paved by experience

When it comes to designing and implementing funding arrangements, it helps to have a partner with unrivalled lived experience. Clients not only benefit from the rigour of our Big Four heritage, but the progressive, challenging approach we’ve become recognised for.

Already, our team has been involved with the majority of ABC arrangements. And although CBJPs are a developing area, with few actually implemented, we were actuary to the schemes which did the first two and having explored many more. We also offer clients a detailed understanding of escrows and their varying structures.

This makes us ideally placed to advise on how such arrangements can support your journey plan or, alternatively, how existing arrangements can be restructured.

Get in touch

To explore how alternative financing can benefit you, get in touch with one of our specialists today.

+44 (20) 7123 6000 Get in touch

FAQs

A structure where group assets are used to provide a robust, long-term cash flow to the scheme, as well as ongoing security. This helps extend the period over which deficits need to be addressed. These are also referred to as Asset-Backed Finance (ABF) or Pension Funding Partnerships (PFP).
These arrangements use third-party capital to provide an additional financial covenant to the scheme, often with a particular target funding level/outcome in mind. The third party will look to manage some or all of the scheme assets in order to achieve this outcome, with the additional capital providing an underpin.
An escrow could be: a sponsor bank account over which the trustee of the scheme has security, a trust arrangement where the funds are held outside of the sponsor, or a special purpose vehicle structure (often a partnership) which holds the funds. Each has its own pros and cons and the appropriateness depends on the objectives of the sponsor and trustee.

Key people

Our people

Get in touch

Talk to us today to see how our bolder thinking can get you better results

+44 (20) 7123 6000 Get in touch