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RNS Number : 7826L
Bridgepoint Group plc
15 September 2021
Bridgepoint Group plc
Strong performance for the first six months of 2021 and good
momentum looking ahead
Bridgepoint Group plc (Bridgepoint or the Group) announces an
update for the six months ended 30 June 2021, the period prior to
the Group's recent listing on the London Stock Exchange
2021 half-year highlights:
-- Good trading momentum with revenues up 55% and underlying
EBITDA up 178% compared to the prior year period
-- Total Assets Under Management (AUM) of EUR28.5 billion,
an increase of 54% compared to June 2020, driven by the
acquisition of EQT Credit and the launch of BDC IV
-- Fee paying AUM of EUR17.7 billion, a 41% increase from
June 2020
-- Capital deployment in line with expectations: EUR2.7 billion
invested in the first half of 2021 compared to EUR0.6
billion for the prior year period (which included disruption
from start of COVID crisis). During the half-year investments
were made into six companies in the United Kingdom, United
States, Ireland and Switzerland
-- Portfolio performed well: benefitted from continued improvement
in economies across Europe and underpinned by strong realisations
(EUR2.1 billion of gross exits completed in the period)
-- Continued strong momentum in fundraising with Bridgepoint
Europe VII (BE VII) now in market with a target fund size
of EUR7.0 billion
Commenting on this performance, William Jackson, Executive
Chairman, said:
"I am pleased to be sharing a strong performance for the first
six months of the year following our IPO on the London Stock
Exchange. I would like to extend my thanks to the investors who
have chosen to invest in Bridgepoint and support us on the next
exciting phase of our development. In line with expectations, we
delivered strong growth in revenues and profits in the first half
of the year following the completion of the acquisition of EQT
Credit in October 2020 and the start of investment activity in
Bridgepoint Development Capital's new Fund, BDC IV, in January
2021.
"Following the disruption caused by the COVID pandemic last
year, during the first half of this year capital deployment
returned to normal levels across all our strategic asset classes
and we capitalised upon market conditions to deliver strong exits.
We're making good progress with our current fundraising, with our
new flagship equity Fund, Bridgepoint Europe VII, now in market
with a EUR7 billion fund size target.
"Looking forward, whilst we continue to expect market volatility
as economic conditions recover from the initial shocks of the
pandemic, we are confident in the growth prospects for our business
and our ability to continue to source attractive opportunities for
our Funds."
Presentation and Q&A
The 2021 half-year update along with presentation slides will
be available on the company's website following publication
of this update:
https://www.bridgepointgroupplc.com/results-reports-and-presentations
Additionally, management will hold a webcast to answer questions
from analysts and investors at 9am UK time on Wednesday 15(th)
September:
Join via weblink:
https://www.lsegissuerservices.com/spark/BRIDGEPOINTGROUP/events/030cbbc3-9c34-460b-9f74-18b7ae72b25f
ENQUIRIES
Bridgepoint
Analysts and investors Media
Adam Key Christian Jones / James Murray
adam.key@bridgepoint.eu Christian.jones@bridgepoint.eu
+44 7833 748010 James.murray@bridgepoint.eu
+44 20 7034 3500
Finsbury Glover Hering (Public Relations Adviser to
Bridgepoint)
Charles O'Brien / +44 20 7251 3801 / +44 7825 043 656
Anjali Unnikrishnan / +44 20 7251 3801 / +44 7826 534 233
Bridgepoint@Finsbury.com
Financial performance
Total revenue of GBP122.2m (GBP78.7m in H1 20) is an increase of
55%, driven by:
-- Higher management fees (+GBP26.8m) largely from the acquired
EQT Credit business (+GBP15.1m) and contribution of BDC
IV (GBP13.5m), which began earning fees from 1 January
2021
-- Greater investment profits (+GBP16.9m) as a result of
strong underlying fund performance, in particular BE V's
exit of Calypso for 6x cost
Total operating expenses increased to GBP71.6m (GBP56.8m),
primarily due to the acquisition of the EQT Credit business, and
additional headcount in the professional support teams to support
business growth. Travel costs, reflecting COVID restrictions,
remained subdued in the first half of the year.
Underlying EBITDA of GBP51.6m (GBP18.5m) and a margin of 42%
(24%), driven by the increased revenues from the acquired EQT
Credit business and the commencement of BDC IV fees, as well as
greater investment profits.
Underlying FRE of GBP26.1m (GBP9.9m) and a margin of 27% (14%),
driven by fees from the acquired EQT Credit business and the
commencement of BDC IV fees from 1 January.
Profit after tax of GBP37.4m (GBP15.8m), an increase of
137%.
Earnings per share on a pro forma basis (post listing) would be
GBP0.04 (GBP0.02).
Strategic progress
The Group joined the main market of the London Stock Exchange on
26 July 2021, raising gross proceeds of GBP300m.
Fundraising
Total AUM at 30 June 2021 was EUR28.5bn (EUR18.5bn at 30 June
2020), the increase primarily due to Bridgepoint Development
Capital IV and funds of the acquired EQT Credit business.
Fee paying AUM at 30 June 2021 was EUR17.7bn (EUR12.6bn).
Bridgepoint CLO II was launched in June, raising EUR350m.
Fundraising continued during the period for Bridgepoint Credit
Opportunities IV and Bridgepoint Direct Lending III and shortly
after the quarter end BE VII (target size of EUR7.0bn)
Investment activity
Total investments by Bridgepoint funds during H1 21 amounted to
EUR2.7bn (EUR0.6bn in H1 20).
Total gross exits completed in the period increased to EUR2.1bn
(EUR0.2bn).
At the end of June 2021, the currently investing PE funds (where
the timing of new funds will drive material step-ups in
fee-charging AUM) had made the following primary capital
commitments:
-- Bridgepoint Europe VI: 78% (53% at 30 June 2020)
-- Bridgepoint Development Capital IV 3% (BDC III 81% at
30 June 2020)
-- Bridgepoint Growth I 75% (60% at 30 June 2020)
People
The number of FTE amounted to 320 at the end of the period (30
June 2020: 262) reflecting both the EQT Credit acquisition (31
credit professionals at the time of the acquisition) and the
continued investment in the team ahead of AUM growth.
ESG
Bridgepoint follows a long-term approach with its investments,
and, accordingly, has embedded ESG criteria across its investment
process and portfolio management. Bridgepoint is hands-on in
driving improvement in businesses' ESG-oriented measures with a
philosophy of "constant improvement" and upholds a clear set of
expectations with respect to the activities of its portfolio
companies. Over the last six months, the company has continued to
make good progress in this area, has set new metrics against which
to measure its performance and Bridgepoint intends to be compliant
with Article 8 of the Sustainable Finance Disclosure
Regulation.
Group Board: one third female director representation.
50:50 gender balance achieved for entry level recruitment
(associate programme).
Overall female diversity in the investment team currently at 25%
with 40% target by 2025.
Key financials(1)
GBPm H1 2021 H1 2020 FY 2020
------------------------------------------ -------- -------- --------
Management fees 96.3 69.5 148.6
Profits from co-investment and carried
interest 25.5 8.6 42.3
------------------------------------------ -------- -------- --------
Total income 122.2 78.7 191.8
EBITDA 51.6 18.5 58.7
------------------------------------------ -------- -------- --------
Underlying EBITDA*(2) 51.6 18.5 66.1
Profit before tax 40.4 16.0 48.5
Tax (3.0) (0.2) (0.8)
------------------------------------------ -------- -------- --------
Profit after tax 37.4 15.8 47.7
Profit attributable to equity holders(3) 29.1 13.9 36.5
------------------------------------------ -------- -------- --------
KPIs
H1 2021 H1 2020 FY 2020
------------------------------------- -------- -------- --------
Total AUM (EURbn) 28.5 18.5 26.6
Fee paying AUM (EURbn) 17.7 12.6 16.1
Management fee margin on fee paying
AUM* 1.23% 1.24% 1.22%
Underlying EBITDA margin* 42% 24% 34%
Underlying FRE (GBPm)* 26.1 9.9 23.8
Underlying FRE margin* 27% 14% 16%
Pro forma basic and diluted EPS
(GBP)(4) 0.04 0.02 0.04
FTEs 320 262 310
------------------------------------- -------- -------- --------
Notes:
1. These H1 21 and H1 20 figures are all unaudited, however the
accounting policies applied in this half year update are the same
as those applied in the audited Historical Financial Information
included within the Prospectus published on 21 July 2021.
2. The metrics denoted with a * are alternative performance
metrics used by the Group. The calculations are explained within
the definitions section of this announcement.
3. Prior to the IPO, Dyal IV Equity Fund's interest ("Dyal") was
held at a level below Bridgepoint Group plc resulting in a
non-controlling interest share of profit. Following the IPO Dyal's
interest was consolidated into Bridgepoint Group plc. EPS has been
calculated using profit attributable to all equity holders,
consistent with the requirements of IFRS.
4. Pro forma EPS is calculated using post IPO number of shares
and profit after tax attributable to the shareholders of
Bridgepoint Group plc. An explanation of the metrics and ratios
referenced above can be found within the definitions section.
Assets under management
EURbn H1 2021 H1 2020 FY 2020
---------------- -------- -------- --------
Total AUM 28.5 18.5 26.6
Fee paying AUM 17.7 12.6 16.1
Total AUM development during the last twelve months
EURbn Private equity Credit Total
---------------- --------------- ------- ------
30 June 2020 17.3 1.3 18.5
Fundraising 2.2 0.9 3.1
Acquired funds - 5.9 5.9
Divestments (2.5) (0.5) (3.0)
Revaluations 3.7 0.2 3.9
---------------- --------------- ------- ------
30 June 2021 20.7 7.8 28.5
---------------- --------------- ------- ------
Total Fee Paying AUM development during the last twelve
months
EURbn Private equity Credit Total
------------------------ --------------- ------- ------
30 June 2020 12.2 0.4 12.6
Fundraising / invested 2.0 1.2 3.2
Acquired funds - 3.5 3.5
Divestments (0.4) (0.6) (1.0)
Step down (0.1) (0.4) (0.5)
------------------------ --------------- ------- ------
30 June 2021 13.7 4.0 17.7
------------------------ --------------- ------- ------
Investment activity by Bridgepoint funds
As at 30 June 2021, fund returns continued to be strong and in
line with prior performance.
EURbn Private equity Credit Total
---------------------- --------------- ------- ------
Investments by funds 2.7 0.6 1.8
Gross fund exits 2.1 0.2 2.1
---------------------- --------------- ------- ------
An explanation of the metrics and ratios referenced above can be
found within the definitions section:
Definitions
Term Definition
------------------ --------------------------------------------------------
Central Central represents the support functions of the
Group including investor relations, head office,
finance, human resources, IT, legal and marketing
Credit The Bridgepoint Credit business segment, comprising
the Direct Lending, Opportunities and Senior
Debt strategies
EBITDA margin EBITDA as a percentage of total income
EPS Earnings per share (quoted in this announcement
as pro-forma using post IPO number of shares
and profit after tax attributable to the shareholders
of Bridgepoint Group plc)
Fee paying AUM Assets under management, excluding CLOs and certain
co-investments, upon which management fees are
charged by the Group
FRE Fee related earnings
FTE Full time employee
Management fee The weighted average management fee rate, excluding
margin on fee structural and accounting impacts, for all Bridgepoint
paying AUM Funds contributing to AUM in a specific period
(excluding co-investment vehicles)
Private equity The Bridgepoint Private Equity business segment
comprised of the Bridgepoint Europe, Bridgepoint
Development Capital and Bridgepoint Growth strategies
Total AUM Total value of unrealised assets as of the relevant
date plus undrawn commitments managed by the
Group
Underlying EBITDA Excludes exceptional items from EBITDA
Underlying EBITDA Underlying EBITDA as a percentage of total income
margin
Underlying FRE Underlying EBITDA, less carried interest and
co-investment profits
Underlying FRE Underlying FRE as a percentage of total income
margin excluding carried interest and co-investment
profits
------------------ --------------------------------------------------------
Forward looking statements
This announcement may include forward-looking statements.
Forward-looking statements are statements that are not historical
facts and may be identified by words such as "plans", "targets",
"aims", "believes", "expects", "anticipates", "intends",
"estimates", "will", "may", "continues", "should" and similar
expressions. These forward-looking statements reflect, at the time
made, the beliefs, intentions and current targets/aims of
Bridgepoint Group plc (the "Company"). Forward-looking statements
involve risks and uncertainties because they relate to events and
depend on circumstances that may or may not occur in the future.
The forward-looking statements in this announcement are based upon
various assumptions. Although the Company believes that these
assumptions were reasonable when made, these assumptions are
inherently subject to significant known and unknown risks,
uncertainties, contingencies and other important factors which are
difficult or impossible to predict and are beyond its control.
Forward-looking statements are not guarantees of future performance
and such risks, uncertainties, contingencies and other important
factors could cause the actual outcomes and the results of
operations, financial condition and liquidity of the Company, its
subsidiary undertakings or the industry to differ materially from
those results expressed or implied in this announcement by such
forward-looking statements. No representation or warranty, express
or implied, is made that any of these forward-looking statements or
forecasts will come to pass or that any forecast result will be
achieved. Undue influence should not be given to, and no reliance
should be placed on, any forward-looking statement. No statement in
this announcement is intended to be nor may be construed as a
profit forecast. Neither the Company, nor any of its subsidiaries
nor any of their affiliates, nor any of its or their officers,
employees, agents or advisers, undertake to publicly update or
revise any such forward-looking statement, except to the extent
required by applicable law.
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