CBPE Capital LLP (“CBPE”) is pleased to announce the successful admission of JTC PLC (“JTC” or the “Group”), a leading global provider of administration services to fund, corporate and private clients, to the Official List (premium listing segment) and to trading on the London Stock Exchange’s main market (“Admission”).
CBPE has realised its investment in JTC in full, generating a return of 4.4x invested capital (with an IRR of 33.4%). The IPO has valued JTC at an enterprise value of approximately £338m, with a market capitalisation on Admission of £310m.
CBPE invested in JTC in 2012, partnering with the management team to develop JTC’s platform and pursue a global growth strategy. During the period of CBPE’s investment, JTC has transitioned from a Channel Islands focused administrator to a global service provider with a broad client reach. While still headquartered in Jersey, JTC now employs over 550 people globally and operates in 17 different jurisdictions, including Europe, Africa, the USA, the Caribbean and across Asia-Pacific. The Group has in excess of 4,800 clients, which include alternative asset managers, financial institutions, corporates, family offices and UHNWIs.
Since 2012, revenues have increased almost threefold to £59.8m as at 31 December 2017. Growth has been through a combination of well-planned organic expansion and acquisition. JTC has made ten acquisitions since 2012, all of which have been fully integrated. During a time of significant expansion, the business has made investments in technology, systems and infrastructure to improve the quality and efficiency of its service provision and to ensure that it supports the systems that its clients and their structures require. JTC also recently opened a new global headquarters in Jersey to provide capacity for the next stage of its development.
JTC has an experienced, ambitious and highly regarded management team who are well placed to lead the Group in its future as a listed business. JTC intends to continue its market share development through expansion of its core service and product offering and further intends to participate in the future consolidation of the market through selective acquisitions, building on its track record of success.
Nigel Le Quesne, CEO of JTC commented:
“We would like to thank CBPE for their role in the development of JTC into a global service provider over the last five years. They have provided invaluable support and investment which has facilitated an acceleration in JTC’s growth and success, transforming the business into a leader in the administration services market for funds, corporate and private clients. The IPO is a fantastic opportunity for JTC. As a management team, we see this as the next logical step in our strategy, creating a long-term capital base for our business and providing us with access to the capital markets, as we look to deliver future growth both organically and through our targeted acquisition strategy in a market we view as ripe for consolidation.”
Ian Moore, Partner, CBPE commented:
“We have really enjoyed working with the JTC team over the last five years. Consistent with our investment ethos of backing strong management teams, the relationship has been a true partnership between CBPE and JTC and we are very proud to have been part of the growth and success that the business has achieved. People are at the heart of everything JTC does and the Group has continued to set itself apart through its belief in the value of true shared ownership amongst employees. CBPE believes that this has been a differentiator in the market, driving high levels of client service and enabling the wider JTC team to benefit from the Group’s success. Over the last five years JTC has developed significantly and it now has a robust platform from which it can continue its exceptional track record of growth as an independent, public business. We wish JTC every success in the future.”
CBPE’s investment was originated and led by Ian Moore, with support through the IPO process from James Whittington. It continues CBPE’s strong track record of investing in the business and financial services sector, which includes the successful IPO of leading UK corporate pensions consultancy Xafinity in 2017. Current CBPE investments in business and financial services include Compre and Xceptor.
Zeus Capital was financial adviser, broker and joint bookrunner. Numis Securities acted as joint bookrunner and Stockdale Securities acted as Sponsor. Norton Rose and Carey Olson acted as legal advisers and PwC acted as reporting accountants.
