# JTC to acquire boutique Asset Management business, Blackheath

- Link: https://www.directorstalkinterviews.com/jtc-to-acquire-boutique-asset-management-business-blackheath/4121133979
- Published: 2023-11-24T07:18:43+00:00
- Author: Amilia Stone

JTC plc (LON:JTC), the global professional services business, is pleased to announce
the proposed acquisition of Blackheath, a boutique asset management business based
in the UK.

**Background to Blackheath**

Formed in 2010, Blackheath provides management and regulatory oversight services
to investment funds and offers ManCo services as an Alternative Investment Fund 
Manager as well as enabling hosted firms to provide advisory and arranging services
to professional investors as an appointed representative under Blackheath’s oversight.

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(“
FCA”) since 2011.

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.

**Strategic Rationale**

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. 

**Financial Benefits **

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, 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.”

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