JTC raises £78.9m in placing to fund acquisition of US-based SALI

Fund management services provider JTC has raised £78.9m in a placing to help fund the acquisition of US-based SALI.

The company placed just over 10.99m shares at 718p each. It had announced the acquisition and placing late on Wednesday. JTC has agreed to buy SALI - a provider of fund and structuring administration services to the insurance dedicated fund and separately managed account market - for up to $236m.

As of December 2020, the business administered around 131 funds with circa $14bn assets under management across a broad range of alternative asset managers. This is forecast to grow to more than 160 funds/accounts and $18 billion AUM by the end of this year.

There will be an initial consideration of $204.5m payable in a combination of cash and shares and a further $31.5m also payable in cash and shares, dependent on the achievement of performance targets for the two-year period after completion.

JTC said SALI provides the group with "meaningful" additional scale in the attractive US fund services market and is complementary to its existing footprint, with the US becoming the second-largest jurisdiction with more than $35m of turnover and more than 120 staff.

The acquisition is expected to deliver mid-single digit earnings per share accretion next year based on the proposed funding structure.

JTC chief executive Nigel Le Quesne said: "SALI is a business of exceptional quality and a clear leader in the growing IDF (insurance dedicated fund) market. Their operations are highly complementary to our existing US footprint and their deep expertise will be a fantastic addition to our group capabilities.

"As always, cultural alignment is vitally important to us and like JTC, they are committed to developing successful long-term relationships that span decades. We are excited to welcome the SALI team, their clients and partners to the JTC family."