Leveraged & Equity Investments provide specialist advice and structures for corporate pension funds, with a focus on deficit elimination.

1. Leveraged &
Equity Investments
Pension Scheme
Financing
Innovative financial solutions for defined
pension scheme deficits and ongoing
contributions.

2. THE INFORMATION INCLUDED IN THIS DOCUMENT MAY BE OF A CONFIDENTIAL NATURE AND
IS INTENDED ONLY FOR THE RECIPIENTS AUTHORISED TO RECEIVE IT. DISCLOSURE, COPYING
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Table of Contents
1. Core deficit issues facing defined benefit pension
schemes
2. The path to deficit elimination
3. Facts and figures
4. Professionals comments on pension fund deficits
5. About Leveraged & Equity Investment
6. Contact Leveraged & Equity Investments

3. THE INFORMATION INCLUDED IN THIS DOCUMENT MAY BE OF A CONFIDENTIAL NATURE AND
IS INTENDED ONLY FOR THE RECIPIENTS AUTHORISED TO RECEIVE IT. DISCLOSURE, COPYING
OR DISTRIBUTION IS PROHIBITED AND MAY BE UNLAWFUL, UNLESS THE WRITTEN PERMISSION
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Core Issues arising from Defined Benefit deficits
The Net Asset Value of the enterprise is reduced.
Accounting
regulations
result in the
pension deficit
being shown
as a long term
liability.
Without capital
expenditure, our
deficit financing
solution removes
the liability, off
balance sheet,
increasing NAV.
The deficit reduces business profits.
The deficit
reduces
profits
through
increased
costs.
Leveraged &
Equity
Investments
immediately
clears the deficit.
Reducing costs.
Deficits can cause breaches of financial ratios.
Deficits can
cause breach
of ratios
affecting debt,
regulatory and
other
enterprise
issues.
Our financing is
structured to
enhance ratios,
with built in
reviews, to
ensure full ratio
compliance.
Deficits increase business and investment risk.
Pension
deficits are an
intense focus
area for
shareholders,
investors and
creditors.
L&EI solutions
clear deficits
making
investment or
lending options
more attractive.

4. THE INFORMATION INCLUDED IN THIS DOCUMENT MAY BE OF A CONFIDENTIAL NATURE AND
IS INTENDED ONLY FOR THE RECIPIENTS AUTHORISED TO RECEIVE IT. DISCLOSURE, COPYING
OR DISTRIBUTION IS PROHIBITED AND MAY BE UNLAWFUL, UNLESS THE WRITTEN PERMISSION
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The path to deficit elimination
Whilst we know the requirements of every sponsor will
be entirely different. Initially, we look to commence
pension deficit financing discussions on the following
basis.
1. Initial conversation to establish ongoing client
interest in exploring the benefits of deficit financing
solutions.
2. Agreement on objectives, target reductions and
additional inclusions.
3. Commencement of analysis with sponsor finance &
pension personnel.
4. Broad based proposals, followed by detailed
discussions with all engaged parties including
Trustees.
5. Agreement on way forward and bespoke
structuring.
6. Closure of financing package with deficit cleared or
reduced, and liability controls in place.

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IS INTENDED ONLY FOR THE RECIPIENTS AUTHORISED TO RECEIVE IT. DISCLOSURE, COPYING
OR DISTRIBUTION IS PROHIBITED AND MAY BE UNLAWFUL, UNLESS THE WRITTEN PERMISSION
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Facts & Figures
1. The aggregate deficit of UK schemes eligible for
Pension Protection Fund entry exceeded £340
billion at the end of September 2015. *
2. Over 80% of schemes are undefunded.*
3. On average, the DB scheme deficit of FTSE350
companies increases the Company gearing ratio by
3.4%. For 16 companies it is increased by more than
10%. ****
4. The £315 billion deficit equates to over 16% of the
market capitalisation of the FTSE All Share index. **
5. In the year to March 2015 the profitability of FTSE
100 companies was reduced by £6.5 billion as a
result of deficit reduction funding, but deficits
continue to increase.***
6. A change to “risk free” pension accounting could
add £120 billion to the liabilities of FTSE 100
companies alone. ***
* PPF7800 October 2015, ** LSE FTSE All Share Index 30 September 2015, *** JLT
FTSE 100 as at March 2015 **** Barnett-waddingham.co.uk

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Comments on deficits
1. “Schemes could consider a more innovative
approach” (Ros Altmann – Pensions Minister -
1/7/15)
2. “The average target date for full funding has
extended by 3 years to 2023 since the start of this
decade. However, some schemes are not expecting
to be fully funded until 2040.” (PWC Blogs March
2015)
3. “Plans to repair deficits are now being pushed
further down the road.”(Raj Mody, Head of Skyval
17/3/15)
4. “There are a significant number of FTSE 100
companies for which the pension scheme
represents a material risk to the business.” (JLT –
9/15)
5. “Full funding benefits all stakeholders in the pension
system, sponsors, participants, and the public.”
(Lawrence N Bader: Pension Deficits: An
Unnecessary Evil)

7. THE INFORMATION INCLUDED IN THIS DOCUMENT MAY BE OF A CONFIDENTIAL NATURE AND
IS INTENDED ONLY FOR THE RECIPIENTS AUTHORISED TO RECEIVE IT. DISCLOSURE, COPYING
OR DISTRIBUTION IS PROHIBITED AND MAY BE UNLAWFUL, UNLESS THE WRITTEN PERMISSION
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+44 871 237 4770 |rider@leaseinvestment.com | www.leaseinvestment.com
About Leveraged & Equity Investment
Leveraged & Equity Investment is a financial services
business that specialises in innovative financial solutions.
Leveraged & Equity Investment focuses on two core markets
of expertise. Bespoke financial structuring for liability and
acquisition driven requirements and the equity and
financing requirements of businesses involved in, or
requiring, information and communications technology.
Over thirty years experience in financial structuring has
established the principle objectives of Leveraged & Equity
Investment.
We provide innovative, “outside the box”, financial solutions
to corporate, institutional and business clients. Our clients
are looking to resolve issues, or invest in new potentials to
maximise profitability and stakeholder returns.
We aim to cultivate long-term, mutually beneficial,
relationships with clients by providing sophisticated financial
analysis and client financial structuring.

8. THE INFORMATION INCLUDED IN THIS DOCUMENT MAY BE OF A CONFIDENTIAL NATURE AND
IS INTENDED ONLY FOR THE RECIPIENTS AUTHORISED TO RECEIVE IT. DISCLOSURE, COPYING
OR DISTRIBUTION IS PROHIBITED AND MAY BE UNLAWFUL, UNLESS THE WRITTEN PERMISSION
OF THE AUTHOR IS GRANTED.
+44 871 237 4770 |rider@leaseinvestment.com | www.leaseinvestment.com
Contact Leveraged & Equity Investment
The Pension financing programmes are managed by the
Senior Partner, Chris Bardouleau.
To contact Chris please use any of the methods below:
Email: chrisb@leaseinvestment.com
Direct Portable Number: +44 701 7515 666