JTC Group will acquire a majority stake in Kleinwort Benson’s fund administration business, in a move that will see it expand into Africa.
The transaction will give JTC its first permanent presence in South Africa, as well as bolstering its position in Guernsey and Jersey. It will also increase its global headcount by 40% to around 450 staff.
“With its strength across the alternative asset classes, particularly real estate, private equity and debt funds, Kleinwort Benson’s fund administration business is a good fit for JTC,” says Nigel Le Quesne, CEO and chairman, JTC Group.
“We are now focused on ensuring a seamless transition and integration into our business for clients and look forward drawing on the knowledge and expertise of our new colleagues as part of the JTC team.”
Upon completion, the new business will form part of JTC’s Institutional Services division globally. The deal is subject to regulatory approval and expected to be completed by the end of the third quarter.
The deal is the latest acquisition in the fund administration industry, as both investment banks and private banks look to re-evaluate their business in the wake of regulatory change.
“Moving our fund administration business to JTC, which is a global provider of fund and corporate administration services, leaves us free to focus on our core activities for the benefit of clients and the business going forward,” adds Martha Boeckenfeld, CEO, Kleinwort Benson.