Exit announcement: JCRA

News: Investment News | 13 November 2019

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Sale of award-winning financial risk management advisory firm JCRA delivers Connection Capital clients an attractive return in two years

  • Private investor clients committed £6.7m in JCRA Group’s £13.6m MBO in August 2017
  • Acquisition further strengthens US-based buyer’s global position in the hedging and financial risk advisory space

Private investor clients of Connection Capital, the specialist private client investment business, have made an attractive return in just two years with the sale of JCRA Group Ltd, one of the UK’s leading financial risk management advisory firms.

JCRA has been acquired by Chatham Financial, a US-based financial risk management advisory and technology firm, as part of its strategy to further develop its business in Europe and strengthen its pre-eminent position in the global hedging and financial risk advisory space.

Connection Capital clients invested £6.7m in JCRA’s £13.6 million management buy-out (MBO) in August 2017 to support its management team in executing its business development plans. These included: driving growth via cross sell of services between its different sectors and continued geographic expansion across its areas of operation.

Celebrating 30 years in business this year, JCRA is a market leader in its field in the UK and Europe with an enviable international reputation, providing hedging, financial risk services, including interest rate and foreign exchange advice, and over the counter (OTC) derivatives expertise. Since the MBO, it has continued its growth in Europe, the United States, and Canada, as well as providing services across the rest of the world and strengthening its team.
JCRA CEO Jackie Bowie will join Chatham as the co-head of Europe.

Miles Otway, Partner at Connection Capital said:

“JCRA’s sale to Chatham is a good deal for all concerned. Chatham is an excellent home for the business and will provide new opportunities for JCRA’s employees, as well as the resources to grow the business further in the EMEA region.

“From the Connection Capital perspective, while coming earlier in our investment period than expected, the transaction offers our clients and other shareholders an attractive return within an accelerated timeframe. We wish Jackie, the JCRA team, and Chatham the very best in this next phase and expect the combined business to go from strength to strength.”

Jackie Bowie, CEO of JCRA said:

“Connection Capital’s involvement has allowed us to deliver our growth plans and take JCRA forward as a business, professionalising and focusing our strategy. Their practical as well as financial support has been invaluable. As we hit our 30th anniversary, we are very excited to enter this new era with Chatham Financial.”

Deal advisers
Gateley plc provided legal advice to selling shareholders, managment and Connection Capital LLP.
Equiteq Advisors Ltd provided sell-side corporate finance advice.
BDO LLP provided tax structuring advice to selling shareholders, management and Connection Capital LLP.