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Permira, a private equity powerhouse, is on the brink of clinching a deal worth over £2 billion to acquire JTC, a fund administrator listed in the UK. This move would effectively sideline interest from competing buyout firm Warburg Pincus, according to insiders familiar with the proceedings.

The transaction is anticipated to be officially unveiled as soon as Monday, marking yet another instance of a London-listed company being taken private by an investment firm. Such moves have become increasingly common in recent years as private equity firms seek to tap into the potential of publicly traded entities.

Founded in 1987 and based in Jersey, JTC has carved out a niche in providing administrative services for investment funds, covering a spectrum of assets including private equity, real estate, and credit. The company has been publicly traded since 2018, attracting the interest of major players in the financial industry.

Despite the buzz surrounding the potential acquisition, representatives from JTC, as well as London-based Permira and Warburg Pincus, have opted not to comment on the unfolding situation.

In recent months, JTC has been the focal point of takeover interest from both Permira and Warburg Pincus, highlighting its appeal in the competitive fund administration sector.

That has helped propel a more than 30 per cent increase in JTC’s shares this year. The stock closed on Friday at £13.58 per share, resulting in a market capitalisation of about £2.2bn. 

Private equity firms have been attracted to companies that provide services to investment funds in recent years in part due to the rising value of assets held in private markets. 

Last year Permira sold a majority stake in the Luxembourg-based fund administrator Alter Domus to private equity firm Cinven in a €4.9bn deal. Permira secured a more than seven-times return on its investment in that deal.

JTC generated £172.6mn in revenue in the six months to June, up more than 17 per cent compared to the same period last year. Earnings before interest, tax, depreciation and amortisation rose 15 per cent to £56.5mn.

Led by founder and chief executive officer Nigel Le Quesne, JTC has expanded in part through acquisitions.

JTC this month announced it had completed the purchase of Kleinwort Hambros Trust Company, which provides trust and estate planning services for wealthy individuals.