Investment Completion - JCRA

News: Investment News | 29 August 2017

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Leading financial risk management advisory firm secures support from Connection Capital for £13.6m MBO

  • Funding will facilitate business development, geographical diversification and investment in new technologies

A leading firm of financial risk management advisers has secured the backing of private investor clients of Connection Capital, the specialist private client investment business, for its £13.6million management buy-out (MBO).

JCRA Group Ltd provides hedging, financial risk and debt consultancy services, including interest rate and foreign exchange advice.

Connection Capital clients invested £6.7m in the deal, which will support JCRA’s management team in executing its business development plans: driving growth by maximising synergies within its business, continued geographic expansion across their existing areas of operation, and implementing technological enhancements to drive efficiency.

Founded in 1989, the company is now the market leader in its field in the UK, and has grown strongly in Europe and established an emerging North American presence. Last year alone, JCRA advised on more than 700 transactions totalling £39billion for clients based in 30 different countries.

Globally, JCRA is the second largest advisory firm in its ‘Over the Counter’ (OTC) derivatives niche, and is widely recognised for its technical capabilities, as well as the quality of its advice, particularly for more complex, larger transactions.

Its services cover six core markets: project finance, private equity, corporates, social housing, real estate and operating assets (such as care providers and student accommodation). It has a highly diversified customer base: its blue-chip clients include 3i, Bridgepoint, Travelodge, the Consensus Group, Great Portland Estates, General Atlantic, Intermediate Capital Group and Barings. These clients increasingly demand independent expertise to ensure their hedging decisions are optimal, and the pricing of derivative products is transparent.

Connection Capital says that market dynamics are positive at this point in the cycle, as looming interest rate rises and increasing FX volatility drive demand for hedging and risk management advice.
In addition, banks have largely retreated from providing advice on OTC derivatives, in the wake of several mis-selling claims and increased regulation of their activities, which has left significant growth potential in the specialist risk advisory market.

Miles Otway, Partner at Connection Capital says, “JCRA has an enviable reputation for quality, a great track record and is the market leader in its specialist niche. The company has real potential to expand both in the UK and abroad. Jackie and the wider team are highly impressive and we are delighted to support them in this next stage of the Company’s growth plans.”

Jackie Bowie, CEO of JCRA says, “We have a long track-record and an enviable reputation advising clients across a diverse range of sectors, and this MBO enables us to build on that position and strategically enhance and expand our services. Having the backing of Connection Capital’s clients is a clear endorsement of our achievements so far, and of our capabilities going forward.”