Goodbody plots UK assault with new investment banking unit

Goodbody Stockbrokers is setting up a new investment banking division as it plots to win more business in the UK, where it has poached a senior executive from financial services group Canaccord Genuity.

The Irish brokerage, led by managing director Roy Barrett, set up a London office last year under a plan to move from being a local Irish broker to a sector specialist. The company has expanded its research coverage in recent years to include overseas companies in the gaming and leisure, construction materials, airlines and financial services sectors.

Its rival, Davy, has engaged in a similar strategy to lower its dependence on the Irish market as a series of companies have moved their main stock market listing to London from Dublin.

Under a plan communicated to staff on Tuesday, Goodbody has decided to merge its corporate finance and capital markets divisions into a new unit, called investment banking. This will be run by two co-heads, Stephen Donovan, currently head of capital markets, and Brian O'Kelly, head of corporate finance.

Goodbody has also hired Piers Coombs, currently head of Canaccord's European equity capital markets, to take up a leading position by the end of the year in its London office as head of corporate business in the UK.

The appointment, together with the creation of an investment banking unit, is designed to position Goodbody to pitch for UK corporate brokerships and equity capital market mandates in future, Mr Barrett said.

A spokesman for Goodbody confirmed the contents of the email.

Recent transactions under Mr Coombs’ role at Canaccord include a £230 million (€270 million) equity raise by UK gambling software development company Playtech and online payments company Paysafe’s £450 million share sale last year.

Subsidiary

Meanwhile, Finbarr Griffin is set to become the new head of corporate finance at Goodbody. It is understood that Goodbody intends to wind up its incorporated subsidiary, Goodbody Corporate Finance, as the business is subsumed into the group.

Following the overhaul, the group, which is 51 per cent owned by Kerry-based financial services group Fexco, will comprise three divisions: investment banking, wealth management and asset management.

The move comes a month after Mr Barrett told staff that there was no substance to industry speculation that Goodbody could be taken over by Investec.

Fexco acquired control of Goodbody in January 2011 from AIB, as the bank was selling off non-core assets in the wake of its Government bailout. At the time, Fexco took a 75 per cent stake, leaving staff and management at Goodbody with a 25 per cent holding. Staff and executives at the brokerage have since almost doubled their stake, after reaching incentive targets set at the time of the deal.