JTC to acquire asset management firm Blackheath

Professional services firm JTC announced its intention to acquire UK-based boutique asset management company Blackheath on Friday.

The FTSE 250 firm said Blackheath, established in 2010, specialises in providing investment funds management and regulatory oversight services.

It also offers ManCo alternative investment fund manager (AIFM) services and enables hosted firms to provide advisory and arranging services to professional investors under Blackheath’s supervision.

Regulated by the FCA since 2011, JTC said Blackheath had built a strong reputation for delivering tailored management and advisory solutions to a diverse client base across alternative and traditional asset classes.

Upon joining JTC, Blackheath would become part of the JTC Global AIFM Solutions business, which falls under the institutional client services division led by Dean Blackburn.

The current partners of Blackheath, Stephane Carty and Simon Monson, would continue to be part of the business.

JTC said its strategic rationale behind the proposed acquisition was to complement and strengthen its existing JTC Global AIFM Solutions operations in Ireland, Luxembourg and Guernsey.

The addition would enable JTC to offer ManCo services for UK-based funds, enhancing its ability to provide comprehensive services to firms seeking to launch, promote, and manage UK alternative investment funds.

In the fiscal year ended 30 June, Blackheath generated £0.7m in revenue.

The acquisition was expected to be earnings accretive within the first full year of ownership and achieve an underlying EBITDA margin consistent with JTC’s medium-term guidance of 33% to 38%.

Additionally, it offered an attractive cash generation profile.

Future growth for Blackheath would be facilitated by leveraging JTC’s scale and offering Blackheath’s services alongside JTC’s existing fund administration and depositary services in the UK.

The initial consideration for the acquisition will be settled in cash and JTC equity at completion, with further deferred consideration contingent on meeting performance targets.

JTC said the transaction remained subject to various closing conditions and regulatory approvals and was expected to conclude in the first quarter of 2024, at which point more details would be disclosed.

“We are delighted to announce the proposed acquisition of Blackheath, adding strength to our existing global AIFM Solutions business in the important UK alternative asset management market,” said chief executive officer Nigel Le Quesne.

“The business has excellent alignment with our existing fund administration and depositary businesses in the UK and Europe.

“We welcome Stephane, Simon and all of Blackheath’s clients and partners to the group.”

At 0835 GMT, shares in JTC were up 0.13% at 751.5p.

Reporting by Josh White for Sharecast.com.