JTC has announced the acquisition of Dublin-based manco and fund services business Ballybunion Capital, alongside the publication of its latest set of interim results.
Founded in 2009, Ballybunion provides management and regulatory oversight services to investment funds and offers manco services as an alternative investment fund manager as well as portfolio management and risk management solutions.
It has focused on the premium end of the market, covering alternative and traditional asset classes including private equity, loans, real estate, fixed income, ESG and life settlements.
In the financial year ending 30 June 2020, Ballybunion delivered revenue of €1.8m – 26% up on the previous year.
The business will be accretive to earnings and achieves profits in line with JTC's medium-term guidance of 33% to 38% underlying EBITDA margin.
Growth in the business is expected to continue and will be supported by combining Ballybunion's fund services with those of another recent JTC acquisition, INDOS Financial.
Ballybunion's founder, Patrick O'Sullivan, will remain with JTC in a leadership role focused on the development of its Irish funds business internationally, especially in North America.
All Ballybunion's management and staff will join JTC, becoming part of its Institutional Client Services (ICS) division.
The initial consideration for Ballybunion will be settled in cash and JTC equity. A further deferred consideration is available on the achievement of performance targets in the current year.
The transaction is subject to change of control and final regulatory approvals, and is expected to complete by year end.
Nigel Le Quesne (pictured), CEO of JTC, commented: "Following our successful fundraise earlier this year, we are delighted to announce the acquisition of Ballybunion, which is a sophisticated manco in the strategically important Irish fund services market.
"The business has excellent alignment with our existing fund services business in Europe, as well as our expanding US practice."
JTC interim results
At the same time, JTC has announced strong revenues and further growth in profits for the first half of 2021 in its latest set of interim results.
• Revenue grew by 24.8% compared with the same period last year to £67m at 30 June.
• Underlying profit was up 22.6% to £21.9m year-on-year.
• Annualised new business wins totalled £10.3m – an increase of 19.8% on the first half of 2020.
• The company has won an engagement worth £2.5m per year to provide services to a major global financial institution.
• There has been an improvement in profitability of the ICS division and continued strong performance in the Private Client Services division.
• JTC has acquired employer solutions business RBC cees, as well as specialist depositary, AML and ESG services business INDOS Financial.
• In April, JTC secured £65.9m from investors through an equity fundraise and last week announced the acquisition of US fund services business Segue Partners.
The full set of interim results can be found here