Asset-backed funding structures
Our team of finance and investment specialists have wide-ranging experience in asset-backed funding structures.
Asset-backed funding structures (also known as asset-backed contribution structures (or ABCs)) can be used in the context of scheme funding as a means of funding all or part of a pension scheme’s deficit. They can also be used as a contingent asset by providing a pension scheme with access to assets if certain events occur, such as employer insolvency, and to facilitate a scheme merger by equalising the funding levels between the merged schemes.
The underlying assets used in these structures can vary from real estate to intra-group receivables depending on the nature of the employer’s business. We have experience in using a broad range of assets to support these structures.
- Advising trustees in relation to an asset-backed funding structure in the context of a scheme merger involving loan notes backed by stock
- Advising an employer in relation to the structuring of an asset-backed funding structure involving equities
- Acting for the trustee of the Siemens Benefit Scheme, in conjunction with external specialists, on an asset-backed funding structure involving cross-border intra-group loan obligations with a nominal value in excess of £300 million
- Acting, in conjunction with external specialists, on a real estate asset-backed funding structure with a nominal value in excess of £100 million
- Advising, in conjunction with external specialists, on an asset-backed funding structure involving third party receivables with a nominal value in excess of £300 million
- Advising clients in relation to the certification of asset-backed funding structures for PPF levy reduction purposes.