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Private equity group Permira is nearing a £2bn plus deal to buy UK-listed fund administrator JTC, in a move that would see off interest from rival buyout firm Warburg Pincus, according to people familiar with the matter.
The deal is expected to be announced as early as Monday, the people said, and would mark the latest take private of a London-listed group by a buyout firm.
Jersey-based JTC was founded in 1987 and has been publicly traded since 2018. It offers administrative services for investment funds across assets such as private equity, real estate and credit.
Representatives for JTC, London-based Permira and Warburg Pincus declined to comment.
JTC has in recent months attracted potential takeover interest from both Permira and Warburg Pincus.
That has helped propel a more than 30 per cent increase in JTC’s shares this year. The stock closed on Friday at £13.58 per share, resulting in a market capitalisation of about £2.2bn.
Private equity firms have been attracted to companies that provide services to investment funds in recent years in part due to the rising value of assets held in private markets.
Last year Permira sold a majority stake in the Luxembourg-based fund administrator Alter Domus to private equity firm Cinven in a €4.9bn deal. Permira secured a more than seven-times return on its investment in that deal.
JTC generated £172.6mn in revenue in the six months to June, up more than 17 per cent compared to the same period last year. Earnings before interest, tax, depreciation and amortisation rose 15 per cent to £56.5mn.
Led by founder and chief executive officer Nigel Le Quesne, JTC has expanded in part through acquisitions.
JTC this month announced it had completed the purchase of Kleinwort Hambros Trust Company, which provides trust and estate planning services for wealthy individuals.