Institutions close in on Bridgeport

More than 20 institutions have expressed an interest in buying Bridgeport Advisers and Asset Managers since the financial planning and investment group was placed into voluntary liquidation last month.

The liquidation firm involved in the administration of Bridgeport has sent more than 20 information memorandums to institutions interested in the group after its major shareholder, Zurich Financial Services, pushed it into liquidation.

Jirsch Sutherland liquidator Sule Arnautovic said the “phone has been ringing off the hook” since it published a series of adverts regarding the sale of Bridgeport in metropolitan newspapers over the past fortnight.

Arnautovic told Money Management it would now devise a short list of potential buyers and allow them to conduct their own assessment of the business.

“We’re getting to the stage when short-listed parties can perform their own detailed due diligence, although we have commissioned an auditor to put the accounts in order for 2004 to give them [the buyers] comfort,” Arnautovic said.

Jirsch Sutherland has not priced Bridgeport, however, it has revealed that the Sydney-based firm, which is 55 per cent owned by Zurich Financial Services, has recurring annual trail income of around $1.2 million and $170,000 through individual and corporate clients respectively. These trails are on $200 million and $40 million of funds under management from individual and corporate clients respectively.

Bridgeport was placed in voluntary administration on October 19 after Zurich, which has a fixed and floating charge over Bridgeport’s assets, invoked a contractual clause allowing the group to be sold.

The assets up for sale include the business names, client lists, goodwill, investments in subsidiaries and revenue streams. Jirsch Sutherland, however, is aiming to sell the whole group as a package.