Glasgow-headquartered specialist pension provider @sipp announces MBO backed by Santander

Executives behind management buyout say it means “we can continue to operate and act as an independent and nimble pensions specialist”.

The firm is headquartered in Glasgow, having been founded in the city in 2001. Picture: John Devlin.

A specialist pension provider headquartered in Glasgow is embarking on a new chapter after undergoing a management buyout (MBO) backed by Santander UK.

The entire share capital of @sipp has been acquired for an undisclosed sum by @sipp Group Holdings, which has been set up by the company’s existing management team, who say they are keen for it to remain fully independent and “in control of its destiny”. The holding company was advised by Cameron McKenna of CMS on the transaction. 

The firm that has been bought over was established in 2001 and supports financial advisers and is focused on self-invested personal pensions (SIPPs), small self-administered schemes, and commercial property. It also has an office in Essex, and says it remains independent of any investment platform, fund manager or private equity business, adding that it has about £2 billion in assets under administration from approximately 4,600 clients and 550 financial advisers plus around 1,000 properties within Sipps on its books.

The MBO was led by the firm’s MD Eddie McGuire and finance director Steve Lancaster, who are now its majority shareholders, with the remaining balance held by the long-serving members of the management team.

The deal, which was part-funded by debt from Santander UK, is expected to help drive the firm’s growth plans and “ensures the interests of the management team and the company’s shareholders are wholly aligned”.

McGuire said: “Our management buyout of the firm means we can continue to operate and act as an independent and nimble pensions specialist, just as we have for the past 23 years. This news is fantastic for advisers and their clients because it means business as usual in the day-to-day running of our company. Alongside the management team, I’m very excited to progress with this new era of @sipp, and continue to build a strong specialist pensions business for advised consumers.” 

Richard Mathison, structured finance director at Santander UK, said the lender is very pleased to have supported the MBO. “We look forward to continuing our ongoing relationship and support for the years ahead.” Other Scottish firms to have undergone MBOs in recent months include haulage and distribution business Bullet Express.