LCM completes European servicer purchase

The deal cements parent company LCFH’s position in the management of consumer and SME loans, leases and mortgages across Europe.

LC Financial Holdings – which comprises European credit fund manager LCM Partners as well as the Link Financial servicing companies and credit management technology specialist LDMS – has completed the acquisition of BCM Global, the European mortgage, real estate and commercial loan servicer.

The deal, initially flagged by Private Debt Investor in March this year, marks “the next step in its evolution as a technology-led credit specialist,” according to a press release from LCFH.

BCM’s core business lines cover commercial and residential mortgage origination and management services, outsourcing of banking administration activities and structured finance administration. Its operations cover Ireland, the UK, Italy and the Netherlands. The press release said the business would receive support from LCFH to expand existing business lines and develop new services across Europe.

Paul Burdell, chief executive officer of LCFH, said combining BCM with LCFH would result in assets of over €100 billion covering almost 7 million customers and 110 financial institutions served across 10 jurisdictions.

Our coverage in March said the deal comprised €20 million in cash consideration at completion plus deferred cash consideration of €5 million payable within a year of completion and a cash earnout of €5 million subject to BCM meeting specified financial targets by the second anniversary of completion.

Brookfield Asset Management has a significant minority interest in LCFH and its group companies.