Pensions firm Xafinity raises £180m in float

A pensions adviser aiming to profit from former chancellor George Osborne’s overhaul of the sector in 2015 is launching on the London market after raising £179.8 million.

As part of the Xafinity float, buyout firm CBPE — which snapped up the company in 2013 — is cashing out completely and management’s stake in the firm will fall from around 8% to 5%.

The selling shareholders will gain £125.1 million and the rest of the proceeds will be used to cut debt.

Xafinity is largely a “one-stop shop” adviser to major companies, administering their final salary pensions. But the firm also wants to grow its business allowing members of defined contribution schemes to dip into their pots after pension freedom reforms two years ago.

Co-chief executive Paul Cuff said: “There’s been a huge amount of investment… Pensions freedom is a tremendous opportunity for us.”

The company’s roots go back 40 years to the formation of consultants Hogg Robinson during the Seventies, before it became part of the Equiniti shareholder services and pensions group in 2010.

It made underlying profits of £16.7 million on sales of £51.8 million in the year to March. Zeus Capital is advising Xafinity.