Bridgepoint

A significant part of the Eurozone economy, it covers a varied range of long-established industries and companies acknowledged by their customers for their well-designed, innovative and competitive product offerings. Bridgepoint seeks to identify and invest in those European industrial companies with the strength, pricing power and access to market advantages to overcome pressures from lower cost competitors and with the ability to become market leaders in their own right.

Effective investment requires deep understanding of the circumstances and competitive dynamics of individual companies. Our experience nevertheless shows that businesses operating within this space can be affected by a combination of factors such as: 

• the impact of globalisation
• constant change and adaptation in highly dynamic markets 
• importance of product development to maintain market advantage
• requirement for ongoing capital investment as a key to competitive advantage
• ability to source and fund acquisitions to support growth, especially in consolidating fragmented markets or to support entry into new or emerging markets

The competitive and constantly evolving business landscape creates opportunities to invest in the sector, especially in  developing economies which offer established businesses access to new markets as well as the potential for lower cost manufacturing capabilities. We also see investment opportunities arise when conglomerates seek to divest non-core assets, as stock market interest in the sector diminishes, raising the prospect of de-listings, or in acquiring platform businesses with strong core markets.

Whilst the sector is very broad, Bridgepoint’s primary focus is on aerospace & defence, energy and power, industrial products and speciality chemicals. Common investment themes in the businesses we wish to acquire typically include:

• defensible market leadership
• attractive end markets
• IP or brand-led with strong customer relationships
• opportunities to continue to internationalise a business
• potential for operational improvement or new application of existing product offer
• possible buy and build opportunities in a fragmented sector