Goldman Sachs joined the throng of new entrants into the U.K. pension-insurance market back in 2007.
A decade later, it has managed something of a dignified exit courtesy of Blackstone Group LP, Singapore’s sovereign wealth fund GIC and U.S. insurer MassMutual.
(Related: Goldman-Backed Rothesay Life Buys Bulk Aegon’s U.K. Annuities)
This is a business that has proved much easier to get in to than get out of.
As company bosses became more concerned in the mid-2000s about the unpredictable cost of retirement obligations, demand soared for insurance that would underwrite those liabilities, reducing the uncertainty.
The existing providers of pension plan buyouts, Prudential P.L.C. and Legal & General Group P.L.C., suddenly faced competition from what looked like smart money from investment banks and alternative asset managers.
The Goldman vehicle, Rothesay Life, is among a handful to survive. Lucida, backed by Cerberus Capital Management, struggled to gain scale and was later gobbled up by L&G. Paternoster, supported by the likes of Deutsche Bank and hedge funds Eton Park Capital Management and CQS, was bought by Rothesay.