Goodbody Stockbrokers is believed to be nearing completion of a deal to acquire BCP Asset Management following a period of exclusive talks between the two sides.
Dublin-based BCP was put on the market last year with KPMG appointed to advise the firm on its strategic options.
BCP is said to be worth between €12 million and €14 million, according to sources.
Goodbody emerged as an early potential bidder for BCP and the pair recently entered exclusive talks. A deal could be completed by the year end, it is understood.
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BCP was set up in 1968 and is majority owned by founder David Cullen. It has about €3 billion invested in products distributed by the firm.
The business has specialised in distributing structured investment products that offer capital protection for clients as they commit money to work in the likes of equities and bonds.
Both BCP and Goodbody declined to comment on the matter.
BCP’s revenues declined by 20 per cent to €5.6 million in 2024, according to its latest set of accounts filed with the Companies Registration Office. Administrative expenses of €7.5 million left the firm with an operating loss of more than €1.8 million.
When interest and investment income of more than €1.8 million were factored in, and a tax charge and various other expenses were deducted, the firm closed the year with an after-tax loss of €181,624.
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The company had made a pretax profit of €925,783 in 2023 off revenues of just more than €7 million.
It was previously reported by The Irish Times that KPMG had advised potential bidders that the firm could see its revenue increasing to €12 million over the medium term.
BCP is run by chief executive John Calvert (54), who is a former Dublin footballer.
BCP beefed up its board last year by appointing Aidan Williams, chairman of the National Asset Management Agency, and Mary Brennan, a former internal auditor at pharma group Elan and seasoned non-executive director.
Goodbody, which dates back to 1874, was bought by AIB in September 2021 for €138 million, and is led by chief executive Martin Tormey.
Mr Tormey told The Irish Times in an interview last year that he wanted to grow the company’s asset and wealth-management businesses further.
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Goodbody returned to the black in 2024 with a pretax profit of €7.7 million, marking its first positive result in three years, as fee and commission income jumped. The firm had recorded a €7 million loss in 2023.
AIB injected €50 million of fresh capital into Goodbody at the end of last year “to support future growth opportunities”, according to its annual financial statements. Its total equity reserves, including retained earnings, stood at €118.1 million at the end of 2024, up from €61 million a year earlier.
Goodbody’s asset-management business had €2.5 billion under management as of late last year, including an AIB equity capital business that was moved across. Adding in wealth-management assets under management brought the total to about €15.5 billion.
Others previously linked with a bid for BCP include stockbroker Davy and Irish Life, the pensions and investment giant here.
