April 2021 Fundraise:
Sector: Investment Banking and Brokerage Services
Amount raised: £65.9m at 620p/share
Please note this article is commentary only and does not constitute advice or a personal recommendation.
JTC is a provider of fund management services, with its client range covering funds, corporates, private clients, and offices. They have a diversified client base, with stable, non-cyclical recurring revenues enabled by their long-term client structures, with the average client relationship being 10 years.
JTC is positioned within a structural growth market, as there is an increasing trend towards outsourcing that increases the efficiency for clients. Also, the increasingly complex regulatory environment creates higher barriers to entry for new competitors.
JTC grows through a combination of organic and inorganic growth strategies. Their acquisitions have been particularly successful, with their first made in 2010 and the fragmented market meaning that there is a healthy pipeline of accretive acquisition opportunities.
JTC announced a placing in April 2021, raising proceeds of £66m, these funds would go towards reducing net debt and maintaining a strong balance sheet which would allow them to carry out their strong M&A pipeline. At the time of the placing JTC announced there were a few bolt-on opportunities, these included Segue Partners, a US innovative fund services provider, and Ballybunion, a boutique Irish asset manager.
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