JTC Share Price Edged 1.5% Higher on the Blackheath Acquisition

The JTC PLC (LON: JTC) share price edged 1.47% higher after revealing its intention to acquire Blackheath Capital Management LLP, a boutique asset management business based in the United Kingdom. The strategic move is expected to bolster JTC’s Global Alternative Investment Fund Manager (AIFM) Solutions business and expand its presence in the UK.

Blackheath was founded in 2010 and has since provided investment funds management and regulatory oversight services. The company offers ManCo (Management Company) services as an Alternative Investment Fund Manager (AIFM) and facilitates hosted firms in offering advisory and arranging services to professional investors under its oversight. 

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Blackheath has maintained regulatory approval from the UK Financial Conduct Authority (FCA) since 2011. The company has earned a solid reputation for delivering tailored management and advisory solutions to a diverse client base across the UK and Europe. 

These services encompass both alternative and traditional asset classes. The founding partners of Blackheath, Stephane Carty and Simon Monson, will continue to be integral to the business after its integration into JTC.

The proposed acquisition of Blackheath aligns with JTC’s strategic objectives, particularly in strengthening its Global AIFM Solutions business. This move will enhance JTC’s presence in Ireland, Luxembourg, and Guernsey, enabling the company to extend ManCo services to UK-based funds.

By adding a ManCo solution to its portfolio alongside existing UK fund administration, corporate, and depositary services (offered through INDOS Financial), JTC aims to provide comprehensive services for firms seeking to launch, promote, and manage alternative investment funds in the UK.

In the fiscal year ending on June 30, 2023, Blackheath generated approximately £0.7 million in revenue. The acquisition is anticipated to contribute positively to earnings from the first full year of ownership. It is expected to achieve an underlying EBITDA margin of 33% to 38% per JTC’s medium-term guidance.

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.”

JTC share price. 

The JTC share price edged 1.47% higher to trade at 757.50p from Thursday’s closing price of 746.50p.