JCRA joins Chatham to form financial risk management giant

London-headquartered JCRA Group has joined US-based Chatham Financial, in a move that forms a global powerhouse in financial risk management solutions. Following the integration, Chatham and JCRA will collectively advise on transactions worth a notional amount of more than $700 billion.

JCRA is a financial risk advisor specialising in hedging and debt advice. Having gained 30 years of experience in structuring and advocating for competitive pricing in derivative products, JCRA designs financial hedging solutions and provides debt advice globally to clients in real estate, project finance, infrastructure, private equity and social housing, as well as corporates. The firm has been attracting plaudits for its work recently, and was named Risk Management Advisory Firm of the Year at the GlobalCapital Global Derivatives Awards 2019.

This also seems to have attracted the attention of Chatham Financial. Founded in 1991, Chatham already boasts a team of nearly 700 employees, serves more than 3,000 companies across a wide range of industries, and handles over $700 billion in transaction volume annually and helping businesses maximise their value in the capital markets. In order to further bolster its stature as a risk management advisory and technology firm, Chatham looked at JCRA as an opportunity to gain a foothold in Europe.

While Chatham has top tier status in the US markets, JCRA has a similar billing in Europe. Chatham already had a well-established London office, but the move is set to create a combined firm which is a dominant player in the market. Following the integration, Chatham and JCRA will collectively serve over 3,000 clients and advise on more than 20,000 transactions with a notional amount in excess of $700 billion each year. The consultancy will continue to be independent and 100% employee owned, with offices in London, Singapore, Melbourne, Toronto, Denver, Krakow, and Kennett Square, Pennsylvania.

JCRA’s Chief Executive Officer, Jackie Bowie, will join Chatham as Co-Head of Europe and commented, “We’re enthusiastic about the future. The combined team’s knowledge of the European markets, now supported by Chatham’s leading technology platform, will raise the bar for what clients expect when transacting in the debt and derivative markets.”

M&A advisory firm Equiteq advised JCRA on the deal. Regarding Equiteq’s role in the transaction, Bowie added, “We have known the team for quite a few years and they had engaged with JCRA early on other aspects of preparation for exit. The team was on hand throughout the process and provided guidance to help us reach a successful conclusion.”

Meanwhile, Baker McKenzie advised Chatham Financial on the move. Baker McKenzie’s team was led by the firm’s UK office, but Baker McKenzie's offices in New York, USA and Toronto were also involved in the transaction.

Commenting on the deal, Ian Jack, Banking & Finance Partner and Chatham Financial's relationship partner said, "We are delighted to have advised Chatham Financial on this strategically important acquisition as it looks to expand its advisory and technology platform. This was a highly complex transaction involving regulatory clearances in the UK and the US, and very clearly demonstrates Baker McKenzie's strength in tackling highly challenging transactions.”