A consortium led by CVC and Prudential Financial is close to securing a £1bn-plus stake in Standard Life's pension-risk transfer business, pulling ahead of other bidders for a new entity the insurer created to fund larger pension scheme buyouts. The deal would give Standard Life firepower to compete with North American private capital groups like Apollo and Brookfield, which have aggressively entered this market.

The UK pensions market presents a massive opportunity. Consultancy LCP projects £350bn to £550bn in risk transfer deals over the next decade as companies seek to offload defined-benefit liabilities from their balance sheets. Under the proposed structure, the coalition would take an equity stake in Standard Life's subsidiary SLAL, committing more than £1bn in equity injected over time as deals close.

If finalized, the agreement could be announced by the end of next month. This would position Standard Life alongside UK insurers such as Pension Insurance Corporation, Legal & General and Rothesay, which have dominated this segment. BlackRock and Goldman Sachs' asset management arm also reviewed the proposed structure, though the deal has not yet been finalised.