JTC has acquired SALI Fund Services, a US-based provider of fund services to the insurance dedicated fund (IDF) and separately managed account (SMA) market, for a maximum consideration of $236m.
An initial sum of $204.5m will be settled by a combination of $192.2m in cash and up to $12.3m in new JTC ordinary shares.
A further consideration of up to $31.5m is payable in cash and JTC ordinary shares on the achievement of performance targets for two years post completion.
The acquisition is not subject to regulatory approval and is expected to complete at the end of October.
About SALI
Founded in 2002, SALI provides a turn-key solution for the creation and administration of IDFs and has more than $15.8bn of assets under management. The business is headquartered in Austin, Texas.
IDFs are investment vehicles that enable a broad range of alternative investment managers to provide institutions, family offices and high-net-worth individuals with a tax-efficient vehicle to invest the long-term capital allocated through life insurance policies into alternative assets.
JTC says the acquisition of SALI advances its strategic objective to strengthen its presence in the US.
Combined with the acquisitions of NES Financial in 2020 and Segue Partners earlier this year, the US has become JTC’s second largest jurisdiction, with more than $35m in revenues.
The SALI acquisition gives JTC’s Institutional Client Services division access to the insurance market, where there are expected to be significant incremental opportunities in the medium to long term, and provides its Private Client Services division with additional service lines and expertise.
JTC CEO Nigel Le Quesne commented: “SALI is a clear leader in the growing IDF market. Their operations are highly complementary to our existing US footprint and their expertise will be a fantastic addition to our group capabilities.”
HSBC Channel Islands and Isle of Man provided a range of banking and lending facilities to support JTC’s acquisition of SALI. The bank also acted as the sole mandated lead arranger, bookrunner and underwriter on the debt funding for JTC.
• For more information on the acquisition click here