JTC acquires alternative fund specialist INDOS for £12.5m

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JTC acquires alternative fund specialist INDOS for £12.5m

JTC, the global provider of fund, corporate and private client services, announced this morning its acquisition of INDOS for a maximum consideration of £12.5m.

The initial consideration is £11m which will be settled in cash £10m and JTC equity £1m. A further £1.5m deferred consideration is available to management on the achievement of performance targets, JTC confirmed in a statement this morning.

Founded in 2012, INDOS is an industry-leading specialist in depositary, ESG and AML oversight services for alternative investment funds. As of December 2020, INDOS' client assets under depositary oversight were c. $35bn and AML officer clients represented c. $11bn.

It is clear that their deep expertise, commitment to service excellence and proven ability to innovate and grow makes INDOS a great addition to the JTC platform."

All INDOS employees, including INDOS founder and CEO Bill Prew and his senior management team, will join JTC, becoming part of the Institutional Client Services (ICS) Division. The transaction is subject to FCA regulatory approval and is expected to complete by the end of 1Q2021.

INDOS is a leading provider of depositary and other high value services in the fast-growing alternative assets market.

Nigel Le Quesne, CEO of JTC, said: "INDOS is a business of real quality which operates in a strategically important part of the fund services market. Having collaborated with Bill and the team several times, it is clear that their deep expertise, commitment to service excellence and proven ability to innovate and grow makes INDOS a great addition to the JTC platform. The transaction also adds further scale in Ireland, a priority market for the Group, and the UK, where our London team has more than doubled in size over the last 18 months due to client demand."

"We offer a warm welcome to our new colleagues and are excited to bring the benefits of the acquisition to existing JTC clients and to providing INDOS clients with an even richer suite of global services and the full backing of the JTC Group."

Bill Prew, CEO of INDOS, added: "Having grown organically since 2012, we understand what it takes to create value through building long-term client relationships based on service quality and expertise. We share much of our cultural DNA with JTC and their focus on clients, innovation and technology means that we are very excited about our future as part of the Group. I am also delighted that all members of the INDOS team will become shared owners of JTC."

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Christopher Copper-Ind

Christopher Copper-Ind is editor-in-chief of International Investment. Before this, he was editorial director of The Business Year, from 2014 to 2017.