JTC acquires Segue Partners

JTC, a global professional services business, has acquired Segue Partners (Segue), a fund services provider head-quartered in St Louis, Missouri, USA. 

The initial consideration will be settled in cash and JTC equity. A further consideration is available on the achievement of performance targets in 2022 and 2023.

Michelle Murray, Managing Director and Founder of Segue Partners, created the business in 2010 and has led its successful growth since. Murray is a highly respected financial services professional and entrepreneur with over 28 years’ experience in venture capital and public accounting industries.

Segue differentiates its offering based on quality of service and combines an intimate understanding of institutional limited partners with a ‘white glove’ investor relations service. The business provides a range of sophisticated fund solutions to meet the needs of private equity, venture capital, debt funds and family offices. Segue also delivers accounting services specifically designed to meet the needs of entrepreneurs, portfolio companies and start-ups.

Murray will continue to lead the business, becoming a member of JTC’s Institutional Client Services (ICS) US regional management board. All 12 other Segue employees will also join JTC, becoming part of the Group’s Institutional Client Services (ICS) Division. The transaction is not subject to any regulatory approvals and completes with immediate effect.

Segue will enhance JTC’s fund services presence in the US, providing an additional scalable platform that is well positioned for growth and complements the Group’s existing US footprint, including its focus on world-class technology. Concurrently, JTC’s more than 30 years of experience in serving listed funds and international clients in a global market that is increasingly complex and highly regulated will confer huge benefits to Segue’s existing and future clients.

Segue’s Midwest location facilitates expansion throughout North America and the company has strong and long-lasting relationships with a diverse range of clients across 10 US States and Canada. The acquisition brings with it a depth of asset class expertise, particularly within the venture capital space. 

The US is an important growth market for fund services, including alternative asset classes such as private equity, venture capital, real estate, debt and hedge. The prevalence of outsourcing for fund services is lower than levels seen in Europe, offering further opportunities for strong growth and Segue, with its established reputation for client service excellence, is well positioned to capture new business with the backing of JTC’s global scale and platform.

In the financial year ending 31 December 2020, Segue delivered revenue of USD1.5 million a 17 per cent increase from the previous year and underlying EBITDA in excess of 20 per cent. The business has continued to grow strongly and there are opportunities for further growth in revenues and margins as a result of leveraging JTC’s scale, both in the US and internationally.

Nigel Le Quesne, CEO of JTC, says: “We are very pleased to announce the acquisition of Segue, which is a high quality addition to our strategically important and fast-growing US business. Michelle and her team have built a reputation for delivering first-class service and strong growth year on year and we look forward to supporting and accelerating that as they become part of the Group. The cultural alignment with JTC is superb and we offer a warm welcome to Michelle, her team and all Segue’s clients and partners.”

Michelle Murray, CPA, Founder and Managing Director of Segue Partners, says: “I founded Segue with the strong belief that there was a better way to meet the needs of clients based on delivering the perfect blend of experience, service quality and a results-orientated culture. As we seek to expand our business materially and capture opportunities that exists in the US market and beyond, JTC is the perfect partner to help us achieve our goals. Like Segue, JTC has the highest of standards and constantly strives to exceed client expectations. We are excited to become part of a dynamic Group, with such a deep-rooted culture and track record of success.” 

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