Investment case

The Group has one of the largest private market platforms directed at middle-market growth investing.

With particular strength in Europe, the local presence provided by the Group’s 10 offices is untypical of middle-market firms and drives origination, value creation and therefore fund investor returns. This wide network provides Bridgepoint with “on the ground” local expertise in conjunction with sector teams to produce material competitive advantage.

Bridgepoint also benefits from its position as a leader in middle-market investing. Even through periods of disruption, middle-market investment by the private equity sector has remained resilient. In Europe, investments in middle-market businesses have consistently accounted for the majority of private equity deals from 2007 to 2022. From 2017 to 2022, there were over three times more European middle-market transactions than European large-cap transactions.

More broadly, the private asset management market continues to benefit from sector tailwinds. Private market investments are an increasingly important asset class both for investors seeking returns and for asset management firms, resulting in increasing allocations to private assets from our fund investors.

Bridgepoint has a three-pillar growth strategy focused on continued organic and M&A-driven growth across investment strategies and geographies.

Bridgepoint has a long track record of expanding thoughtfully, both organically and inorganically, and is strongly positioned to continue to deliver further growth. Our strategy is focused on growing and diversifying Bridgepoint’s business and creating value for clients and shareholders. There are three strategic pillars:

• Continue the track record of strong AUM growth established over the past two decades through scaling existing private equity and credit strategies;
• Continue to launch new quality credit and equity products within existing investment strategies; and
• Continue to selectively acquire and integrate new businesses in adjacent private market asset classes that can add to the platform over time and drive value for fund investors and shareholders alike.

Bridgepoint has a strong balance sheet, a resilient operating model and a platform capable of supporting significant growth as well as a progressive dividend.

With high-revenue visibility, a strong balance sheet position, an asset-light model, high and stable margins, strong cash generation and attractive dividend yield, Bridgepoint’s outlook remains very attractive:

• Clients’ capital is committed for the long term, with private funds typically benefitting from capital being locked in for seven to 10 years.
• Asset-light with ~1% of AUM on balance sheet, but the assets we do have are strong with >£650m of cash and investments
• A track record of delivering operational leverage increasing underlying EBITDA margins by >15 percentage points from 2018 – 2022; and
• Aim to grow dividend progressively over time as we scale by organic growth of our existing businesses and by adding complementary or adjacent strategies.

A track record of industry leadership since 2007.

We are an international alternative asset fund management group with offices in Europe, North America and Asia. We support growth businesses with a European focus and seek to build stronger companies with greatly enhanced long-term potential.

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