Bridgepoint Group Plc · LSE:BPT
Bridgepoint — FY2021 Earnings Presentation
31 slides from Bridgepoint's earnings presentation, Mar 24, 2022
Slide 1: Bridgepoint Group Plc 2021 Preliminary Results
Bridgepoint Group Plc 2021 Preliminary Results
Slide 2: William Jackson
William Jackson
Slide 3: Bridgepoint 2021 preliminary results: performance snapshot
Bridgepoint 2021 preliminary results: performance snapshot First set of results since July 2021 IPO Performance ahead of expectations set at IPO Revenues up by 41% and profits up by 72% from 2020 Better than expected fund performance in 2021 Good start to 2022 Fund raisings on track | 3
Slide 4: Bridgepoint recap: a global leader in private assets investing
Bridgepoint recap: a global leader in private assets investing 176 €33bn investment 30 year High AUM, track Quality FTEs, 10 record Returns >400 offices investors • Scalable platform • Delivering compelling • BE V currently • Blue chip investor investor and harvesting base • On the ground shareholde
Slide 5: Strong 2021 performance – 72% growth in EBITDA and PBT
Strong 2021 performance – 72% growth in EBITDA and PBT1 Strong investment performance Growth in AUM (€bn) AUM by business unit (€bn) 32.9 Strong investment returns and valuation uplifts in 2021 26.6 10.0 Capital deployment on plan 7.4 19.2 22.9 Capital returns ahead of plan 2020 2021 Private E
Slide 6: Bridgepoint: fund raising and fund investment progress
Bridgepoint: fund raising and fund investment progress Fund raising market remains congested as previously noted but good progress with BE VII and DL III: targets unchanged Strong investment activity in BE VI: • Highly accretive bolt-on programme accelerated in Q4 2021 • Fund now over 90% commit
Slide 7: The right kind of returns
The right kind of returns The environment Diversity, equity and inclusion We are committed to supporting the transition to We aim for Bridgepoint and our portfolio companies net zero and for all portfolio businesses to achieve to be even more reflective of the communities in net zero by 2040 which w
Slide 8: Adam Jones
Adam Jones
Slide 9: Growth of AUM & FPAUM…
Growth of AUM & FPAUM… AUM (€bn) FPAUM (€bn) +24% +14% (3.5) 5.7 4.1 (1.9) 4.6 (0.5) 32.9 26.6 16.1 18.3 2020 Closing Fundraising Capital returned Revaluations 2021 Closing 2020 Closing Fundraising / Divestments Step Down 2021 Closing AUM AUM FPAUM invested FPAUM Credit fundraises made excellent p
Slide 10: … combined with stable fee margins and strong investment performance drives significantly enhanced revenue
… combined with stable fee margins and strong investment performance drives significantly enhanced revenue Revenue (£mn) Management fee margin (%) €12.7bn €12.7bn €16.1bn €18.3bn 270.6 1.7 1% +41% 1.23% 1.25% 1.22% 1.23% 71.2 26% 191.8 169.8 0.9 144.8 1.9 42.3 24.0 1.9 25.6 197.7 73% 143.9 148.6 117
Slide 11: Investment made ahead of future growth
Investment made ahead of future growth Breakdown of operating expenses3 (£m) FTE growth 1163 IT hardware, software & 964 licenses 344 External Services 3% 310 6% 168 Admin and other 141 14% 8.6 5.2 21.5 £150.9m 169 176 115.6 Personnel Expenses3 2020 2021 77% Investment Professionals Central Total pe
Slide 12: Operating leverage drives EBITDA and FRE growth
Operating leverage drives EBITDA and FRE growth Underlying EBITDA growth5 (£m) Underlying FRE growth6 (£m) 42% 24% +72% 35% +95% 113.9 17% 48.5 66.4 24.9 2020 2021 2020 2021 Underlying EBITDA Underlying EBITDA margin Underlying FRE Underlying FRE margin Making progress towards longer term FRE margin
Slide 13: Limited costs below EBITDA
Limited costs below EBITDA Depreciation (£m) Finance costs7 (£m) 11.9 11.9 2.9 8.2 7.8 1.9 9.1 1.7 5.9 5.6 9.0 3.5 4.1 6.1 6.3 2.8 2.0 1.8 2019 2020 2021 2019 2020 2021 Premises Other Premises Other 2021 premises costs reflect impact of transition year for London premises: expected to peak in 2022 a
Slide 14: Simple and capital light balance sheet
Simple and capital light balance sheet High level overview of the underlying balance sheet8 (31 December 2021 excluding CLOs) 1,001.4 1,001.4 Non-current liabilities Other non-current assets 190.9 Deferred consideration and property leases £323m £125m Goodwill, property leases 254.2 and carried Inte
Slide 15: Preliminary Statutory P&L
Preliminary Statutory P&L Preliminary Statutory P&L and exceptional items 2020 (£m) 2021 (£m) (28.6) (7.7) 113.9 EBITDA 66.4 58.7 85.3 85.3 2020 Underlying Exceptional costs 2020 Reported 2021 Underlying Exceptional costs 2021 Reported EBITDA EBITDA EBITDA EBITDA (28.6) (3.1) 3.8 (7.7) (0.6) 4.2 90.
Slide 16: Dividend and guidance
Dividend and guidance Dividend Dividend of £30 million or 3.64 pence per share proposed in respect of the period since IPO We expect to grow our dividend progressively as our business scales Guidance Transition guidance for BE VI to BE VII: 30 June 2022 Management fee rates expected to conti
Slide 17: William Jackson
William Jackson
Slide 18: Looking ahead
Looking ahead Strong start to 2022 Business development Sale of Miller Homes Continue to make (4.0x MM) progress towards adding a Sale of Element Materials third strategy (3.7x MM) Board and its committees Total of €1.8 billion from working well exits to be returned to Will appoint two f
Slide 19: Outlook for 2022
Outlook for 2022 Strong performance in 2021 underpins confidence in 2022 Bridgepoint’s funds well positioned for volatility No material direct exposure to Russia/Ukraine nor Russian investors in our funds Alert to and positioned to react to increasing interest rates Remain confident in ability to co
Slide 20: Q&A
Q&A
Slide 21: Appendix
Appendix
Slide 22: Predictable revenues – committed capital fee model
Predictable revenues – committed capital fee model (1/2) Illustrative All Private Equity funds AUM (fee-paying) Acc. Invested capital Credit Opportunities I – III Management fee (%) 1 A fund is raised and fees are charged on total committed capital (typically 1.5% - 2.0%) 1 2 3 “AUM step-down” 2 As
Slide 23: Predictable revenues – invested capital fee model
Predictable revenues – invested capital fee model (2/2) Illustrative All Direct Lending funds AUM (fee-paying) Acc. Invested capital Future Credit Opportunities funds Management fee (%) 1 Fund is raised and fees are charged on total invested capital throughout the fund life 1 2 2 Successor fundraisi
Slide 24: Overview of carry model – illustrative waterfall
Overview of carry model – illustrative waterfall Investment return and drawn commitments Distribution of profits Illustrative 1 2 An illustrative fund realizes Invested capital returned a gross return of 2.0x on to fund investors and invested capital expenses repaid 3 200 If fund profits exceed the
Slide 25: Overview of carry model – IFRS recognition
Overview of carry model – IFRS recognition IFRS recognition Revenue streams to Bridgepoint group Illustrative Carried interest recognized once highly probable that it would not result in significant Management fees Carried interest reversal In practice, this means unrealized fair values are disc
Slide 26: Income statement
Income statement Commentary £m 2020 2021 1 Management Fees 148.6 197.7 •1 Increase in management fees primarily due to impact of the EQT 2 Investment Income 42.3 71.2 Credit business following its acquisition in 2020 and BDC IV Other Income 0.9 1.7 which started charging management fees in 2021 Oper
Slide 27: Balance sheet
Balance sheet9 Commentary £m 2020 2021 Non-current assets •1 Goodwill arising from acquisition EQT Credit business Property, plant and equipment 41.6 75.8 1 Goodwill and intangible assets 125.7 122.6 Carried interest receivable 27.9 38.9 •2 Increase in value and investment into Bridgepoint funds 2 I
Slide 28: Cash flow statement
Cash flow statement Commentary £m 2020 2021 1 Cash from operating activities 28.4 23.1 1• Operating cash flow is driven by EBITDA although timing differences will occur from year-to-year Payments for property, plant and equipment (3.2) (6.3) Investments in co-investments (19.8) (11.2) Payments for a
Slide 29: Overview of Bridgepoint funds
Overview of Bridgepoint funds Fund Fee-charging Invested Hurdle Group share of Fund size AUM AUM Vintage % rate Carried interest Catch-up rate carried interest Equity BE IV €4,835m €1,638m €1,168m 2008 93% 8% 20% 100% 9% BE V €4,000m €4,850m €3,164m 2015 93% 8% 20% 100% 2% BE VI €5,766m €7,466m €5,7
Slide 30: End notes
End notes Page number Note Reference 1 EBITDA and PBT are underlying and exclude exceptional costs, amortisation and exceptional net finance income Page 5 2 2020 includes 2 months of the acquired EQT Credit business 3 Excludes investment linked bonus Page 11 4 2020 includes 2 months of the acquired
Slide 31: Disclaimer
Disclaimer contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Forward-looking Except where otherwise specified, information contained in this statements are not guarantees of future performance and such risks, presentation has been prep