Pension decisions (formerly Renaissance pensions)

JSC NPF Renaissance Pensions

As of November 2019, it is one of the twenty largest non-state pension funds in Russia in terms of reserves for non-state pension provision.

As of 30.06.2019, the Fund maintains more than 180 corporate pension plans, the amount of reserves of which exceeds 18 billion rubles.

History

2021

NPF Renaissance Pensions sold for 2.5 billion rubles and renamed Pension Decisions

At the end of October 2021, it became known how much the non-profit pension fund of Sberbank paid for the purchase of Renaissance Pension JSC. We are talking about the amount of 2.5 billion rubles.

According to Kommersant, citing the published statements of NPF Sberbank, by the end of June 2021, the assets of NPF Renaissance Pension amounted to 25.4 billion rubles (while the regulatory capital of the fund exceeded 0.8 billion rubles). Thus, the price for the pension fund amounted to about 10% of assets excluding capital or 7% - taking into account.

NPF Sberbank acquired the Renaissance Pension Fund for 2.5 billion rubles =

It is noted that the transaction amount is lower than the prices of funds operating on pension savings. As a rule, they are sold at 10% of the assets. At the same time, the press service of the NPF Sberbank, despite the published reports, told the publication that the cost of the transaction "is commercial information of the parties and is not subject to disclosure."

Sberbank believes that it is advisable to buy non-state pension funds only at this price: a higher cost as a result will simply be unprofitable. The assets of such companies are growing, so that soon the price paid will be even lower relative to the real value of the fund, said Sergey Okolesnov, general director of the Pension Partner consulting company.

The deal to acquire the Renaissance Pension NPF in the actually paid price of 7-10% probably includes the growth potential of assets for NGOs, which have doubled over the past few years and are likely to continue to grow in the foreseeable future. That is, in fact, the real multiplier of the transaction in the future of several years will decrease and approach 5-7%, "he said.

The deal to sell the Renaissance Pension NPF to Sberbank was closed in July 2021. A few months later, in October, the sold fund was renamed Pension Solutions^[1]

NPF Sberbank buys Renaissance Pension Fund

On June 1, 2021, it was announced the sale of Renaissance Pension JSC to the non-profit pension fund of Sberbank. The transaction, the value of which is not announced, will be closed after receiving regulatory approvals and fulfilling other standard closing conditions for such transactions, the press service of Renaissance Pensions reports.

By the beginning of June 2021, Sberbank NPF is the largest Russian private fund with assets of 747.9 billion rubles, its pension reserves are 65.2 billion rubles, the number of participants is 1.8 million people. NPF Renaissance Pensions works only for NGOs, its pension reserves are 24.5 billion rubles, the number of participants is 42 thousand people. Renaissance Pensions clients are about 200 companies, including large international holdings (NPF's own data).

NPF Sberbank buys Renaissance Pension Fund

According to the press release, the acquisition of Renaissance Pension NPF will allow Sberbank NPF to increase the portfolio of corporate clients, which today includes about 800 companies, and thereby strengthen its position in the corporate non-state pension market.

NPF Renaissance Pensions is focused on corporate pension programs and has a portfolio of large international clients. We rated this fund as one of the most attractive for buying assets on the NPF market, including due to the high-quality management policy of its shareholders, Sberbank said.

It is noted that the Renaissance Pension JSC will remain a separate legal entity for at least a transitional period, which, according to both parties, may take at least a year. Any decisions in this matter will be made taking into account the interests of the fund's clients and the requirements of the regulator. Renaissance Pensions believes that the deal will give NPFs an advantage in the form of high-tech services and the availability of all customer service operations through a wide regional network of Sberbank branches.^[2]

Notes