Morning all, Craig McGlashan here with the Europe Wire from the London newsroom.
We’re focusing on financial services this morning with a look at some of the latest deals in the sector.
Financial services as a whole offers a range of opportunities – something we looked at in our Sector Spotlight on the industry earlier this year – but this morning our focus is on fund administration and accounting.
First up, Permira and CPP Investments have completed the acquisition of fund administrator JTC for £2.7 billion ($3.7 billion; €3.2 billion).
We then switch to accounting, where Inflexion-backed Baker Tilly is adding Baker Tilly (Luxembourg) to its existing Netherlands-Belgium platform.
To finish, we switch to aesthetics, where Growth Partner has invested in Healthxchange.
Back-office draw
Private capital fund administration is a hot sector within a popular wider industry, making it one of the most popular asset servicing sub-segments, as PE Hub’s Nina Lindholm wrote in a feature on the subject.
The industry has been boosted by the tailwinds in the alternative asset management industry. So much so that Permira’s exit in 2024 from Alter Domus, a fund administration and corporate service provider for the alternatives sector, won PE Hub’s Large-Cap Europe Deal of the Year last year.
It’s also a sector that is ripe for AI-backed product development, Neil Cochrane, partner at Motive Partners, told Nina earlier this year.
Now, Permira is backing both those trends with another deal, having completed its acquisition of JTC for £2.7 billion ($3.7 billion; €3.2 billion) alongside CPP Investments.
The companies agreed to the take-private at the tail-end of last year.
JTC is a global fund administration, corporate and trust services (FACTS) platform serving private capital and wealth management clients through its institutional capital services and private capital services businesses. The company has built what it describes as a leading platform for US trust services, on top of its long-established European operations, and points to structural demand from private capital and the intergenerational transfer of wealth as long-term growth drivers.
Permira has invested about €16 billion of equity capital in the wider services sector over four decades, including previous investments in fellow FACTS businesses Alter Domus, Tricor and Kroll.
The firm plans to support continued investment in next-generation technology, AI-enabled client delivery and intelligent automation at JTC, as well as backing the company’s expansion across North America and Europe through organic growth and acquisitions.
“We look forward to supporting the business as it delivers its latest growth era, accelerating its expansion across North America and Europe through continued investment in service quality, AI-enabled client delivery and strategic acquisitions,” said Robin Bell-Jones, partner at Permira, in a statement.
European expansion
The audit and accounting sector has also been drawing a lot of private equity interest, with dealmakers seizing opportunities in the fragmented market in recent years.
Henrik Geijer, partner at IK Partners, told PE Hub in a round-up on the sector that the market outlook for audit and accounting “remains highly attractive.”
“In audit, European SMEs increasingly require reliable, high-quality services for regulatory and governance needs, making credibility essential,” said Geijer. “At the same time, strategic investment in technology offers opportunities to optimize delivery models, enhancing efficiency, quality and client experience.”
Now, Inflexion-backed Baker Tilly is adding Baker Tilly (Luxembourg) to its existing Netherlands-Belgium platform, creating a full three-country Benelux platform for the accounting and advisory network.
The enlarged platform will comprise 25 offices and approximately 1,500 professionals across the Netherlands, Belgium and Luxembourg. Partner-shareholders from all three countries will invest jointly in the platform.
The combination is intended to give the platform greater scale and capital to invest in innovation, technology and talent development, while each national organization keeps its own identity, local leadership and entrepreneurial approach. Businesses are increasingly operating across borders and facing more complex regulation and accelerated digitalization, and Baker Tilly said connecting expertise across the Benelux region strengthens its ability to support clients on cross-border challenges.
Inflexion made a minority investment in Baker Tilly Netherlands in early 2025 before announcing plans to merge it with the Belgian entity later that year.
New markets
Growth Partner has invested in Healthxchange, a UK and Ireland aesthetics distributor the company describes as the market leader in the region. The backing will help Healthxchange expand its customer-focused offerings, including brand partnerships, educational programs and service initiatives, according to a statement.
Healthxchange was established in 2000. The business serves more than 10,000 aesthetic practitioners and partners with major brands including Allergan, Galderma, Obagi and Medik8.
Growth Partner’s investment will support Healthxchange’s expansion into new markets.
That’s it from me today. Rafael Canton will bring you the US Wire later today and I’ll write to you again from Europe tomorrow.
Cheers,
Craig