The transaction is part of a strategy for Phoenix to become one of the largest funders and managers of equity release assets in the UK. The firm has been active in the equity release market since 2016 and at the end of June about a third of its £10.7bn diversified illiquid asset portfolio comprised equity release mortgages with an average AA rating.

The group said it also hopes to grow its bulk purchase annuity business.

Phoenix’s Retirement Solutions business is part of Phoenix’s growing open business led by Andy Curran, CEO savings & retirement, UK and Europe.

Mr Curran said: “Equity release is an important option for many people when it comes to meeting their Financial Planning needs later in life. It is a growing market that we fully support and know well, Phoenix have been active as a funder in the market since 2016.

“We’re delighted to have acquired this portfolio and to be securing the retirement plans for more borrowers. This is a testament to the strength and expertise of our Retirement Solutions team led by Tom Ground and you should expect to see more activity from us in the equity release space in the coming months and years.”

Phoenix claims to be the UK’s largest long-term savings and retirement business, with £300bn of assets under administration and around 13m customers.

Phoenix’s illiquid portfolio has a strong focus on sustainable. In addition to its equity release mortgage portfolio, its illiquid portfolio comprises of private placements, UK local authority loans, commercial real estate and infrastructure debt.

Phoenix has made several acquisitions over the past year.

Standard Life Aberdeen sold its Standard Life brand to Phoenix Group in February as part of a branding review of all its businesses.