Bridgepoint

The sector continues to demonstrate attractive growth as the benefits of outsourcing are recognised, driving service levels up and costs out, through efficiency and specialisation. Demand for outsourced solutions is increasing due to regulation (primarily Health & Safety and environmental) and also the growing incidence of public sector spending initiatives.

With an established track record in the sector, we remain attracted to high visibility of earnings, the opportunity for geographic expansion and the benefits of focused management on ‘people businesses’. Sub sectors which Bridgepoint has identified as particularly interesting include:

• Professional services and BPO
• Property and Facility services
• Testing, Inspection and Certification
• Equipment rental and asset outsourcing
• Transport services and infrastructure

Whilst these sub-sectors appeal due to fundamental structural drivers, we are also attracted to the opportunities arising from several themes which are increasingly evident in the space:

• Outsourcing driven by regulatory, legislative or risk management requirements
• Operators seeking internationalisation, often through acquisition
• Businesses that would benefit from privatisation and liberalisation trends