Investment consultancy partnership Lane Clark and Peacock (LCP) is reported to be among the shortlisted handful of potential bidders for KPMG’s pensions advisory arm in a second round of bidding.

Sky News has reported that LCP is prepping £200m bid for the unit. Initial valuations bandied around in the trade press in July were around the £120m mark.

LCP, backed by mid-market private equity firm Inflexion, reported a record income of £114.9m in its latest annual report, an 8.5% increase from 2017/18.

KPMG’s pensions division has some £50bn under advice and employees 20 partners and around 450 staff.