Global professional services business JTC has acquired US-based SALI Fund Services (SALI) which has over $15.8bn in assets under management.
Founded in 2002, Texas-headquartered SALI provides a solution for the creation and administration of Insurance Dedicated Funds (IDF's) and Separately Managed accounts (SMAs) and has over $15.8bn of Assets under Management (AuM). The business is headquartered in Austin, Texas.
IDFs are investment vehicles that enable a broad range of alternative investment managers to provide institutions, family offices and high net worth individuals with a tax efficient vehicle to invest the long-term capital allocated through life insurance policies into alternative assets.
Due to the nature of IDF's, client relationships are very long-term, with fund lifespans being multi-decade, which in turn provides excellent recurring revenue visibility.
SALI was and continues to be a pioneer of the IDF market, giving it strong first mover advantage and placing it at the heart of an IDF ecosystem that includes over 20 of the world's leading insurance companies and some of the biggest names in alternative asset management.
The acquisition of SALI advances JTC's strategic objective to strengthen its presence in the US. Combined with the recent acquisitions of NES Financial in 2020 and Segue Partners earlier this year, the acquisitions have significantly strengthened the Group's scale and capabilities in a key growth market.
Following the acquisition of SALI, the US becomes JTC's second largest jurisdiction, with over $35m in revenues.
In addition, SALI provides JTC's Institutional Client Services (ICS) division with access to a large new market, insurance, where there will be significant incremental opportunities in the medium to long term and also provides the Group's Private Client Services (PCS) with additional service lines and expertise to support existing clients.
Nigel Le Quesne, CEO of JTC, said: "SALI is a business of exceptional quality and a clear leader in the growing IDF market. Their operations are highly complementary to our existing US footprint and their deep expertise will be a fantastic addition to our Group capabilities set. As always, cultural alignment is vitally important to us and like JTC, they are committed to developing successful long-term relationships that span decades. We are excited to welcome the SALI team, their clients and partners to the JTC family."
Thomas Nieman, CEO of SALI Fund Services, said: "SALI couldn't be more excited to join the JTC family, whose history of cultivating client relationships over multiple decades aligns strongly with SALI's core mission and values. SALI's customers include many of the largest and most innovative insurance companies and alternative investment managers around the globe. We look forward to continuing to enhance our service offering for these clients through JTC's global reach and commitment to customer service."
Long Ridge, a US private equity firm, led a minority growth capital investment in SALI in 2018 and during Long Ridge's partnership with SALI, the company achieved exceptional growth and solidified its position as the clear leader in the IDF market. Macquarie Capital served as sole financial advisor to SALI and Long Ridge.
The acquisition is expected to close before the end of 2021, subject to customary closing conditions.
