Private Credit Funds Eye £1.3B JTC Take-Private Deal

JTC Plc, the London-listed provider of fund solutions and corporate services, has become the center of attention for major private equity players Warburg Pincus and Permira, both of whom have submitted takeover proposals that could lead to the company’s delisting from the London Stock Exchange. The engagement with suitors represents a significant moment for the British financial services firm, which has built a substantial presence in the corporate services sector. The involvement of such prominent private equity firms underscores the attractiveness of JTC’s business model and market position.

The take-private scenario unfolding around JTC reflects broader trends in the London market, where private equity firms have been increasingly active in acquiring publicly listed companies they perceive as undervalued. For JTC shareholders, the proposals from Warburg Pincus and Permira present a potential premium exit opportunity, while for the private equity firms, the acquisition represents a chance to capitalize on JTC’s established client relationships and recurring revenue streams in the financial services sector.

Private credit funds are actively evaluating a debt financing package worth approximately £1.3 billion ($1.8 billion) to support the potential acquisition, according to people familiar with the matter. This substantial commitment from alternative lenders highlights the growing role of private credit in facilitating major corporate transactions, particularly in situations where traditional bank financing might be constrained or less flexible. The £1.3 billion figure represents a significant deployment of capital from the private credit sector into the British market.

The credit assessment is being structured around JTC’s earnings before interest, taxes, depreciation and amortization of approximately £150 million, indicating that lenders are working with solid financial metrics to underwrite the transaction. This EBITDA multiple of roughly 8.7 times demonstrates the credit funds’ confidence in JTC’s cash flow generation capacity and the stability of its business model. The involvement of private credit in this magnitude reflects the sector’s continued expansion beyond its traditional middle-market focus into larger, more complex transactions.

For the private credit firms participating in the potential financing, the JTC deal represents an opportunity to deploy capital at attractive returns while working with established private equity sponsors Warburg Pincus and Permira. The transaction structure being contemplated would see private credit essentially replacing what might traditionally have been syndicated bank debt, showcasing the alternative lenders’ ability to provide large-scale financing solutions for sophisticated acquisitions.

The potential take-private of JTC Plc represents a notable transaction in the London financial services sector, with implications for both the public markets and the private credit landscape. A successful acquisition would remove a established player from the London Stock Exchange, continuing the trend of public-to-private transactions that has characterized certain segments of the British market. For JTC itself, private ownership under firms like Warburg Pincus or Permira could provide greater operational flexibility and strategic focus away from quarterly public market pressures.

The debt financing structure being contemplated by private credit funds will likely involve careful consideration of JTC’s revenue stability, client concentration, and growth prospects. As a provider of fund solutions and corporate services, JTC’s business generates recurring revenue from long-term client relationships, characteristics that are particularly attractive to credit providers. The £150 million EBITDA figure provides a solid foundation for structuring debt that balances the acquisition financing needs with appropriate credit protection for lenders.

Should the transaction proceed, it would represent another significant milestone in the evolution of private credit as a mainstream financing option for major corporate acquisitions. The ability of credit funds to assemble a £1.3 billion package for a single transaction demonstrates the sector’s growing capital base and underwriting capabilities. For the British market specifically, the deal highlights the continued interplay between public companies, private equity capital, and alternative lending sources in shaping corporate ownership structures.