JTC's agreement to buy the business adds to a busy M&A trend for the fiduciary services, trusts and fund administration sector around the world.

JTC, the international provider of fund, corporate and private client services, has agreed to acquire NES Financial, a US -based fund administration services business. The deal comes about a fortnight after JTC bought a private client business in Jersey.

The acquisition, which is subject to relevant regulatory approvals, represents “a key part” of JTC’s growth strategy, it said. The organisation wants to boost its institutional client services business in the US.

Founded in 2005, NESF has 58 employees, all of whom will join JTC, delivering services from Boston, Massachusetts, where its fund administration operation is based and San Jose, California, which is the company’s corporate headquarters and technology development centre of excellence. 

NESF provides fund administration, treasury and related services.

“The US is a key growth market for the Group and we believe that NESF is the perfect partner and platform to drive the strategic expansion of our ICS division and in particular our US fund administration business. We have been in dialogue with the NESF team for around a year as a potential partner and provider of technology services,” Nigel Le Quesne, CEO of JTC, said.

As reported in March, JTC acquired Sanne’s private client business. The acquisition is designed to expand JTC’s private client business in Jersey, with all clients and staff transferring to JTC.

There has been plenty of M&A activity in the funds, administration and corporate services space in recent years. In 2019, SMP Group of Companies, a global professional and financial services group based in the Isle of Man, bought Jersey-based trust and corporate services provider Helm Trust Company. A number of banks, such as Investec, ABN AMRO and Barclays have spun off trusts and associated businesses. In December 2017, investor services firm SGG Group bought Jersey-based First Names Group from AnaCap Financial Services, the private equity organisation, and ZEDRA bought the Barclays UK trusts business, completing that deal in April 2016. More recently, ZEDRA purchased BNP Paribas Singapore Trust Corporation.  The last decade has marked a steady flow of deals consolidating the sector.