JTC announces acquisition of UK-based asset management firm Blackheath

JTC, a renowned global professional services business, has announced its proposed acquisition of Blackheath, a prestigious boutique asset management business based in the UK. This strategic move is set to enhance JTC‘s presence in the global asset management sector.

Background and Reputation of Blackheath

Established in 2010, Blackheath has carved out a strong reputation for providing management, regulatory oversight, and advisory solutions to a diverse range of clients. As a regulated entity under the UK Financial Conduct Authority since 2011, Blackheath specializes in both alternative and traditional asset classes. Its founders, Stephane Carty and Simon Monson, will continue their roles in the business post-acquisition.

Strategic Expansion: JTC to Acquire Boutique Asset Manager Blackheath

Strategic Rationale Behind the Acquisition

The acquisition aligns with JTC’s vision to expand its JTC Global AIFM Solutions. Integrating Blackheath into its fold will enable JTC to offer management company (ManCo) services for UK domiciled funds, complementing its existing services in Ireland, Luxembourg, and Guernsey. This addition is pivotal in providing a comprehensive suite of services for launching and managing UK alternative investment funds.

Financial Implications and Benefits

Blackheath’s financial performance, with a revenue of approximately £0.7 million in the fiscal year ending 30 June 2023, indicates a promising future under JTC’s umbrella. The acquisition promises to be earnings accretive from the first year, aligning with JTC’s medium-term financial goals. The deal structure includes an initial cash and equity settlement, followed by deferred consideration based on performance targets.

Closing Conditions and Expected Completion

Subject to closing conditions and regulatory approvals, the transaction is anticipated to be finalized in Q1 2024. This acquisition promises to be a transformative step for JTC, not only in terms of financial growth but also in expanding its service offerings.

Executives’ Perspective

Nigel Le Quesne, CEO of JTC, expressed excitement about the acquisition, emphasizing the alignment and synergy between JTC and Blackheath in the UK and European markets. Stephane Carty, Founder and Partner of Blackheath, also shared his enthusiasm for the partnership, highlighting the growth opportunities and benefits for clients through this collaboration.

The proposed acquisition of Blackheath by JTC marks a significant move in the asset management landscape, promising enhanced services and growth in the UK and global markets.