Fund administrator JTC has entered into an agreement to buy US-based technology-enabled peer NES Financial (NESF).
The move is part of JTC’s strategy to build up its Institutional Client Services (ICS) operations in the US.
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The deal also aligns with its plan to take over technology capabilities to support growth.
NESF’s purchase is said to add “important technology capabilities” to JTC.
JTC will initially use these capabilities to drive growth and boost operational efficiency within the ICS arm.
The firm will eventually use these capabilities across the entire group, with NESF being the platform of JTC in the US fund administration market.
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By GlobalDataAs part of the deal, all 58 NESF employees will move to JTC. They will operate out of Boston, Massachusetts, as well as San Jose, California.
NESF founder, chairman and CEO Michael Halloran will assume the role of the global head of technology strategy at JTC.
Halloran will also have a seat on the firm’s senior executive board.
The deal, whose financial details were not revealed, awaits regulatory nod.
Halloran stated: “We believe that fund administration can be transformed through a combination of technology, domain expertise and business process.
“In JTC we have found a partner that shares this vision and has the experience, expertise and passion to pursue it.”
NESF offers fund administration, loan servicing, specialised EB-5 administration, and 1031 tax-deferred exchange services to private equity and real estate clients among others.
The foundation of the firm’s technology is its eSTAC cloud-based platform, which manages critical back-, mid- and front-office tasks.
JTC CEO Nigel Le Quesne said: “NESF is much more than just a US-based fund administrator; it brings to the Group world-class technology capabilities developed in Silicon Valley, a hugely experienced and talented management team and staff, and a high quality client book that encompasses private equity and real estate and market leading positions in several niche sectors.”
Last month, JTC announced the takeover of the private client services business of Sanne.
