PensionBee is scaling up its operations with significant new funding and strategic moves into the US, aiming to transform the global pension market.
- The firm reported a remarkable 41% increase in assets under administration, reaching £5.5 billion by September’s end.
- PensionBee has secured £20 million through a share placement to finance its US expansion, in collaboration with State Street.
- The company has achieved two consecutive quarters of positive adjusted EBITDA, with ambitions to capture a substantial share of the global pension market.
- CEO Romi Savova highlights the potential of US market penetration to support PensionBee’s growth vision for the forthcoming decade.
PensionBee, an online retirement savings provider listed in London, is making notable strides as it expands into the US market backed by a substantial £20 million funding. This strategic move supports the company’s broader ambition to reshape the global pension landscape.
A significant highlight for the firm this quarter is a 41% rise in assets under administration, culminating in £5.5 billion by the end of September. This growth reflects the successful acquisition of both new and existing customers, with net flows amounting to £538 million and £153 million, respectively. The company now services 260,000 customers, marking a notable increase of 37,000 compared to the previous year.
To support its US expansion, PensionBee has raised £20 million via a share placement. This capital will fuel its nascent US business, launched in partnership with State Street’s investment management division. Given that the US defined contribution pension market constitutes about 80% of the global total, the opportunity here is vast and valued at nearly $22.5 trillion.
PensionBee’s financial performance also showcases resilience, having reported its second quarter of positive adjusted earnings at £1 million. The firm’s revenue experienced a commendable rise, reaching £9 million from £6 million the previous year. With a target to break even on an adjusted EBITDA basis by 2024, the company is on a robust trajectory toward long-term profitability.
Romi Savova, the CEO of PensionBee, expressed optimism about the venture’s potential, emphasizing the positive consumer response and the development of localized features to streamline pension rollovers. Savova envisions that their strategic initiatives will significantly enhance PensionBee’s growth over the next decade, particularly in enabling millions of Americans to secure a fulfilling retirement.
PensionBee’s strategic efforts and financial investments position it to significantly influence the global pension market over the next decade.
