JTC Continues Acquisition Spree With Proposed Citi Trust Deal

JTC has made a number of trust company and related sector acquisitions, part of an M&A trend in this part of the wider wealth management ecosystem.

Professional services provider JTC appears to be on an
unstoppable acquisition spree: it has announced its proposed
purchase of Citi Trust, the fiduciary and trust administration
services business, from Citigroup. The financial
terms have not been disclosed.

Citi Trust operates from the following trust jurisdictions: New
York, Delaware, South Dakota, Jersey, Singapore, Switzerland and
the Bahamas. The group services more than $70 billion in client
assets, covering more than 2,000 ultra-high net worth client
relationships.

JTC has been busy, adding to its footprint in markets such as
that of the US with several deals. For example, in early August
it acquired First Republic Trust Company of Delaware, after
initially announcing the deal on April 22. JTC has also bought
South Dakota Trust Company and New York Private Trust Company.
(For other stories about its acquisitions and strategy, see
here
and
here.)

“Citi Trust is one of the most established and well-respected
providers of trust services globally and we are delighted to have
been chosen as the future custodian of its employees and
clients,” Nigel Le Quesne (pictured), CEO of JTC, said. “The
acquisition is extremely complementary to JTC’s existing
footprint. It is a transformational transaction for the group and
our private client services division, increases our presence in
key growth markets in the US, Europe and Asia, and brings further
resilient annuity-driven revenue to the group.”

Ida Liu, head of Citi Private Bank said: “The decision to sell
our personal trust administration and fiduciary business allows
us to focus our resources on areas that will create impact for
our global clients and drive growth for our wealth business.”

Last year, this news servic explored JTC”s
broader strategy, including its growth ambitions for the
US. 

The trust, corporate and fund services sector has seen a number
of deals in recent months. For example, in November 2023, ZEDRA,
a global specialist in corporate and global expansion, active
wealth, pensions and incentives services, and fund solutions,
bought LJ Fiduciary and Alvarium Private Office which has offices
in the Isle of Man, Geneva and the UK. The business was acquired
from AITi Tiedemann Global, the multi-family office group
recently created from a transatlantic merger. In April, Gen II
Fund Services, a private capital fund administrator, wrapped
up its acquisition of Crestbridge, a European provider of private
capital fund administration services.

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