Jersey-headquartered JTC is to acquire Blackheath, a boutique asset management business based in the UK.
In a statement on 24 November, the global professional services business said the proposed acquisition will complement and enhance JTC's existing JTC Global AIFM Solutions businesses in Ireland, Luxembourg and Guernsey, enabling JTC to provide ManCo services for UK domiciled funds.
The addition of a ManCo solution alongside JTC's existing UK fund administration, corporate and depositary (INDOS Financial) services will enable JTC to provide a full service offering to firms looking to launch, market, and manage UK alternative investment funds.
The existing partners of Blackheath, Stephane Carty and Simon Monson, are to remain with the business. On joining JTC, Blackheath will become part of the JTC Global AIFM Solutions business within the Institutional Client Services division, led by Dean Blackburn.
Formed in 2010, Blackheath provides management and regulatory oversight services to investment funds and offers ManCo services as an Alternative Investment Fund Manager (AIFM) as well as enabling hosted firms to provide advisory and arranging services to professional investors as an appointed representative under Blackheath's oversight.
JTC said Blackheath has a strong reputation providing bespoke management and advisory solutions to a broad range of clients in the UK and Europe covering both alternative and traditional asset classes.
Blackheath has been regulated by the UK Financial Conduct Authority since 2011.
In the financial year ending 30 June 2023, Blackheath delivered revenue of c.£0.7m. The acquisition will be accretive to earnings in the first full year of ownership, is expected to achieve an underlying EBITDA margin in line with JTC's medium term guidance of 33% to 38% and has an attractive cash generation profile. Future growth in the business will be supported by leveraging JTC's scale, as well as the ability to offer Blackheath's services alongside JTC's existing fund administration and depositary services in the UK.
The initial consideration will be settled at completion in cash and JTC equity. Further deferred consideration is available on the achievement of performance targets. The transaction remains subject to various closing conditions and regulatory approvals and is expected to complete during Q1 2024 at which time further detail will be provided.
Nigel Le Quesne, CEO of JTC, said: "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. 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."
Stephane Carty, founder and partner of Blackheath said: "Having formed the business in 2010 and developed a successful UK AIFM business, now is the right time to partner with a firm to support our future growth. We have known the team at JTC for several years and their strong record and expertise in AIFM, corporate governance and fund services will enable us to accelerate our growth as well as benefit our clients through access to a wider range of expertise and complementary services."
