UK FinTech pension and savings provider Cushon has secured £26m from an equity raise and a credit facility.
The equity raise saw Cushon rake in £6m. The raise was led by FinTech VC Augmentum FinTech, a company that has enterprises such as Tide and Habito in its portfolio. Meanwhile, AshGrove Capital provided the £20m credit facility.
According to Cushon, AshGrove provided the credit facility to ensure Cushon was ‘well-positioned’ for further acquisition and consolidation of other master trust schemes, following the businesses’ acquisition of the Salvus Master Trust last year.
Following this capital raise, London-based Cushon claims it intends to complete the acquisition of Construction First Limited, which is a scheme funder of the Workers Pension Trust in Northern Ireland. This latest deal brings Cushon’s overall assets under management to £740m.
Cushon added it aims to use the funding to support further acquisitions, scaling capability and product innovation with ‘accelerated delivery of enhancements’ to support employers and engage employees.
Cushon CEO Ben Pollard said, “Following our entry into the pensions market last year, and launch of the world’s first net zero pension, we’ve been keen to bring our unique technology-led proposition to as many employees as we can, as quickly as we can. This raise has the right balance of lending and equity to enable us to do just that. We are delighted to welcome the team at WPT to our expanding family and to have the support of such experienced investors to help us continue on our journey.”
AshGrove Capital co-founder and partner Phil Fretwell added, “Cushon has developed disruptive technology enabling it to provide better outcomes for workplace savers, a market that is evolving rapidly and demonstrates clear organic and inorganic growth opportunities.
“The business model also exhibits strong credit characteristics due to its highly predictable revenue profile and compelling unit economics. Tech-enabled services is a key focus area for AshGrove Capital and in Cushon we have found an opportunity to support a superb management team with a positive sustainability agenda that has built a business which, in our view, is at an inflection point of growth.”
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