Three magic circle firms have taken lead roles advising on Goldman Sachs' purchase of the Rank Group's pension scheme – the UK's biggest ever pensions liability transfer to date.

Allen & Overy (A&O) took the main role for Goldman, advising as its recently-formed subsidiary Rothesay Life purchased the assets and liabilities of the Rank Group pension scheme. The deal is thought to be the largest transfer of pension liabilities in the UK so far, with the Rank scheme assets valued at around £700m.

A&O insurance head Philip Jarvis and pensions head Derek Sloan took the lead roles on the transaction, which represents Goldman's first foray into the pensions buy-out market.

Freshfields Bruckhaus Deringer was instructed for Rank, fielding a team under employment, pensions and benefits partner David Pollard. The firm, through financial institutions group co-head Will Lawes, is also thought to have taken a previous role advising Goldman on its initial formation of Rothesay Life.

Meanwhile, Linklaters pensions managing associate Lorna Buckland led a team advising the trustees of the Rank pension plan.

The deal used a new structure which allowed Rothesay Life to buy up liabilities with a much greater value than was previously possible.

Following the transfer, Rank will receive a cash payment of at least £20m, covering the expected surplus within the pension plan. The company is expected to use this to reduce group borrowings. The deal will also free Rank from paying £30.8m into the pension fund, which it agreed to when it sold its Deluxe Film Services company in 2006.

A&O's Jarvis said: "This transaction breaks the mould of the pension buy-outs industry by making Goldman Sachs' financial strength available to the buy-out market for the first time. It gives corporates and trustees certainty in respect of liabilities and enhanced security to pension scheme members."

Rank is one of the leading European gaming groups, owning brands including Mecca Bingo and Grosvenor Casinos. It employs about 7,000 people across its operations.

The transfer is subject to tax clearance, which is expected by May 2008, with completion expected by June 2008. Insurance company Paternoster has been one of the largest players in the pensions buy-out arena to date, recently doing deals with media group Emap and ports operator P&O.