Bridgepoint Group Plc · LSE:BPT
Bridgepoint — Investor Day (October 2024)
110 slides from Bridgepoint's investor day presentation, Oct 24, 2024
Slide 1: Capital Markets Day
24 October 2024 Capital Markets Day
Slide 2: Welcome
Capital Markets Day Welcome Adam Key / Head of Shareholder Relations
Slide 3: Agenda — Capital Markets Day
Agenda — Capital Markets Day • Welcome Q&A Adam Key • Raoul Hughes, Xavier Robert, Doug Kimmelman, Tyler Reeder, Chris Busby, Olivier Nemsguern, Andrew Konopelski • Bridgepoint today and tomorrow Raoul Hughes • Strategy Raoul Hughes • The middle market difference Distribution Xavier Robert • Raoul H
Slide 4: Bridgepoint today and tomorrow
Capital Markets Day Bridgepoint today and tomorrow Raoul Hughes / Chief Executive
Slide 5: Larger, more diverse, differentiated and set to outperform
“ Today we are larger, more diverse, differentiated ” and set to outperform in a high-growth consolidating market 5
Slide 6: Four key investment themes
1> Pre-eminent dedicated middle market investor 2> Continuing track record of strong investment and financial performance 3> White space to grow 4> Ambitious, with a cohesive strategy and management to deliver 6
Slide 7: Investment Performance
ü 40-year track record of delivering Investment compelling returns Performance ü Top or upper 2nd quartile PE and infrastructure funds ü No realised losses in direct lending ü 2024 highest ever capital returned ü Deployment in line or ahead of target pace 7
Slide 8: Evolution since IPO
Evolution since IPO 2.3x 2.7x 5.9x 4.3x AUM Management FRE EBITDA 3 3 fees $73bn £398m £148m £282m today1 today2 today2 today2 $32bn £149m £25m £66m at IPO at IPO at IPO at IPO Larger, Strong more Market Notes: performanc Ambition diverse growth 8 1. 30th June 2024 e 2. 2024 analyst consensus as at
Slide 9: Sustained long term growth
Sustained long term growth +16% 2.3x AUM CAGR over AUM growth since 20 years IPO 73 AUM $bn 44 38 41 32 23 22 12 13 14 15 8 10 10 10 10 10 10 4 6 6 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020* 2021 2022 2023 H1 2024 Larger, Strong more Market Note: Reported n
Slide 10: Why we listed
Why we listed Raise capital to support Provide greater strategic ü Organic growth growth flexibility ü Growth through M&A Enhance Bridgepoint’s standing as a trusted Further drive long-term ü Strengthened shareholder returns counterparty platform Larger, Strong more Market performanc Ambition divers
Slide 11: Bridgepoint is a pre-eminent dedicated middle market investor
Bridgepoint is a pre-eminent dedicated middle market investor 3 Verticals 8 Investment strategies $73bn Assets Under 14 Offices worldwide ~230 Investment professionals Management 5* UNPRI ESG rating Larger, Strong more Market performanc Ambition diverse growth 11 e platform
Slide 12: A diversified platform
A diversified platform Investment Investor Investor strategy type geography 8% 12% 37% 28% 30 Jun-24 15% 30 Jun-24 13% 30 Jun-24 45% 42% 41% At IPO At IPO At IPO 32% 45% 72% 56% 45% 35% 34% 19% PE Credit ECP Pension funds Americas Europe APAC MEA Asset managers & insurance Sovereign wealth fund Endo
Slide 13: A large and diverse portfolio
A large and diverse portfolio ECP assets Credit have 430,000+ The private equity produce enough backed 400+ employees across portfolio would be electricity to companies since the portfolio a FTSE 30 business power every home inception in the UK Larger, Strong more Market performanc Ambition diverse
Slide 14: Bridgepoint Private Equity: Approach and Market Presence
Bridgepoint Private Equity > Outstanding market position and reputation Market Presence > Total mid-market immersion Pre-eminent > Broad, well-established networks on the ground dedicated providing high-quality and differentiated origination middle market investor with global presence > Sector-drive
Slide 15: Bridgepoint Credit: Approach and Market Presence
Bridgepoint Credit > Broad platform with a presence in eight Market Presence Bridgepoint offices Deep > 330+ industrial advisors experience with > Leverages the whole Bridgepoint network and a broad and sector expertise differentiated origination > Stringent asset selection to hit target Approach pe
Slide 16: ECP: Approach and Market Presence
ECP > Early mover advantage in the sector Market Presence > The largest independent owner of US power Leading generation capacity electricity owner > Reputable and reliable capital across the energy positions ECP transition spectrum well to capitalize > Value-add, hands-on partner on the AI Approach
Slide 17: The importance of culture
Culture-driven business The importance The Bridgepoint values: of culture > Attractive to We do what we say talent > Favoured We do the right thing counterparty for investments > Trusted home We act with intelligence and humility for investor capital Larger, Strong more Market performanc Ambition di
Slide 18: Strong long-term tailwinds in the alternatives market
Alternatives AUM 2033 2023 $25T $58T Strong long-term tailwinds in the alternatives market Larger, Strong more Market Source: Bain Analysis performanc Ambition diverse growth 18 e platform
Slide 19: Ambition
Ambition >2x $200bn AUM growth in the >2.5x AUM in the last fund cycles next 5-6 years Larger, Strong more Market performanc Ambition diverse growth 19 e platform
Slide 20: A formula for future growth
A formula for future growth Expanding Scaling and Platform sources of diversifying existing enhancing capital verticals M&A Consistent, repeatable, strong returns Larger, Strong more Market performanc Ambition diverse growth 20 e platform
Slide 21: Summary
Summary Larger, more Market diverse Ambition growth platform 21
Slide 22: The middle market difference
Capital Markets Day The middle market difference Xavier Robert / Chief Investment Officer
Slide 23: Bridgepoint is a leading global middle market private equity manager
Bridgepoint is a > 40-year history focused on the middle market leading global middle > 3 PE Strategies covering the whole market <€1.5bn EV c.140 PE investment professionals market private equity > > €30bn PE AUM manager and the #1 in > c.210 deals executed and €24bn+ invested since 2000 Europe > c
Slide 24: Full immersion in the middle market
Full immersion in the middle market Three complementary private equity strategies Bridgepoint Bridgepoint Bridgepoint Europe Development Capital Growth €300m < EV < €1.5bn €100m < EV < €300m EV < €100m BE VII = €7bn BDC V target = €2bn BG II target = €200m ~90 investment professionals ~40 investment
Slide 25: The middle market is the largest market
The middle market is the largest market… 88% of buyout transactions happen <€1.5bn We see c.2,800 opportunities per Annual buyout transaction count, Europe and US year across BE, BDC and BG 800 700 14% 10% Number of deals 600 16% 500 9% 12% 400 86% 300 90% 91% 84% 200 88% 100 0 We make 10 – 15 platf
Slide 26: More control over value creation
…With more control over value creation and performance Smaller, higher Opportunity to International Meaningful M&A Multiple exit routes growth businesses professionalise expansion potential opportunities More control over value creation Performance driven by microeconomics (vs macro) Consistent stro
Slide 27: Sustainable middle market growth
Sustainable middle market growth 700 €300m - €1.5bn Average enterprise value at acquisition (€m) 600 5x+ growth in BE enterprise value 500 at acquisition 400 BE Space created for strategies to fill 300 200 BDC 100 €100 - €200m BG 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 201
Slide 28: How is performance delivered?
“How is performance delivered?” 28
Slide 29: First quartile investment performance
First quartile investment performance1 Across BE, BDC and BG funds with vintages within the last 15 years Gross MM Gross IRR Average realised PE performance: 3.2x 29% Note: 1. Performance quartile computed with Hamilton Lane Private Equity benchmarking data. Benchmarks are not intended to be reflect
Slide 30: Bridgepoint flywheel
Bridgepoint flywheel The size of Bridgepoint’s platform provides the financial means to have: • Strong sector teams • Strong local teams • Strong operational improvement teams… …which is unparalleled for the middle market 30
Slide 31: Our sectors - finding the best deals
Our sectors - finding the best deals Advanced Industrials Healthcare Services Technology Agri Pharma Products & Financial Software with Science Consumer Aesthetics Services Transformation Potential 20%+ 9% 12% 18% Energy MedTech Professional & Tech Services with Transition Products Information Servi
Slide 32: Local presence - converting the best deals
Local presence - converting the best deals Multiple offices and deep resources with locally Knowledge sharing across the Bridgepoint platform embedded teams for a long time facilitated by cross-strategy sector teams Stockholm 2001 Amsterdam 2017 London 1984 Paris 1991 Frankfurt 1995 New York Madrid
Slide 33: Driving value from investments
Driving value from investments Top-line Governance enhancement We continue to invest in our Cost ability to add value Human improvement capital 1 2 Risk control and Improve existing Capital accountability business Processes structure Digitalisation and 3 & cash efficiency sustainability Evolve the b
Slide 34: What is a typical Bridgepoint private equity deal?
What is a typical Bridgepoint private equity deal? 1 Mid-market (EV up to €1.5bn) 2 In a clearly identified niche commanding structural growth 3 Leading in its field with strong potential for growth acceleration 4 Seeking to take company from good to great 5 Acquired outside a conventional auction p
Slide 35: Cumulative portfolio revenue growth
Cumulative portfolio revenue growth Bridgepoint’s active PE portfolio rapidly outpaces European GDP Portfolio Revenue Growth (BDC III, BE V and VI) EU GDP Growth 33% 19% 31% CAGR YoY Revenue Growth 19% 14% 6% 3% 4% 2% 1% -6% 2019 2020 2021 2022 2023 35
Slide 36: Differentiated leadership position
Differentiated leadership position… …built over …with 40 years of significant middle market opportunity for investing… further growth 36
Slide 37: Private Equity discussion
Capital Markets Day Private Equity discussion Ruth Prior / Group Chief Financial Officer Chris Busby / Managing Partner, Bridgepoint Europe Olivier Nemsguern / Managing Partner, BDC
Slide 38: Bridgepoint
Bridgepoint 38
Slide 39: Bridgepoint Credit
Capital Markets Day Bridgepoint Credit Andrew Konopelski / Managing Partner, Credit
Slide 40: Three complementary credit strategies
Three complementary credit strategies Investing €13bn AUM in corporate credit across the risk / reward spectrum Target IRR Credit Opportunities €2bn AUM Direct Lending €8bn AUM Syndicated Debt €3bn AUM Risk 40
Slide 41: Bridgepoint knowledge bank
Bridgepoint knowledge bank Leveraging Bridgepoint’s network and sector knowledge Bridgepoint Organisation Sector Expertise Credit Platform ~230 330+ 3 Investment Professionals Industrial Advisors1 Credit Strategies ~300 4 8 Portfolio Companies Sector Teams Local Offices Culture of Knowledge Sharing
Slide 42: BDL investment strategy – What we do
BDL investment strategy – What we do Aim to deliver gross unlevered IRR of 8-10% with protected downside European middle market Resilient end markets and Core Middle Market companies with c.€10-75m Resilient defensive sectors of EBITDA Senior secured debt with high Protected value cover and covenant
Slide 43: Consistent application of target portfolio construction across vintages
Consistent application of target portfolio construction across vintages ~€8bn invested across 100+ investments since 2015 BDL I BDL II BDL III Resilient EBITDA margins 30% 30% 30% Average EBITDA margin at entry Highly cash generative 78% 79% 84% Cashflow as % of EBITDA at entry Defensive capital str
Slide 44: Credit Opportunities investment strategy highlights
Credit Opportunities investment strategy highlights All-weather strategy seeking to capture the best relative value at all points in the cycle Flexibility Investing in both the bespoke primary and secondary markets to capture best relative value Downside protection Seeking investments with downside
Slide 45: How do we invest in Credit Opportunities?
How do we invest in Credit Opportunities? PRIMARY SECONDARY 1. LBO / Solution 1. Recession resilient Backing high quality LBOs with a High-quality names well positioned to Best Relative range of capital structures withstand macro headwinds Value 2. Refi / Dislocation 2. Macro impacted Companies temp
Slide 46: Bridgepoint European CLOs snapshot
Bridgepoint European CLOs snapshot CLO strategy was launched in November 2020 CLOs I – VII raised and CLO VIII in warehouse: c.€2.8bn of CLO AUM1 Resilient portfolio construction: c.50% of investments in core sectors of Services, Technology and Healthcare (incl. Pharma) Highly diversified with robus
Slide 47: Positioning vs. European CLO managers
Positioning vs. European CLO managers Bridgepoint is a top quartile performer across key metrics Top decile Optimal risk-adjusted returns Lack of defaults Top quartile of risk-adjusted return Top decile Portfolio price Top quartile Median Lowest distressed ratio2 Quality Median Top quartile Return E
Slide 48: Highlights of Bridgepoint's European CLO management platform
Highlights of Bridgepoint’s European CLO management platform Established vehicle, observable initial portfolio and strong alignment Bridgepoint provided c.€73m of initial capital to support the platform growth Returns on initial capital used to drive further issuance Third-party originator vehicle e
Slide 49: Credit medium-term growth opportunities
Credit medium-term growth opportunities Capital Asset class Geographic formation diversification expansion • Existing closed-end funds • Expansion into additional • Consideration in time value-added credit strategies to leverage existing • Evergreen vehicles Bridgepoint-ECP presence to • e.g. infra
Slide 50: ECP
Capital Markets Day Doug Kimmelman / Senior Partner & Founder, ECP Tyler Reeder / Managing Partner, ECP
Slide 51: A leading middle-market infrastructure investor
A leading middle-market infrastructure investor ECP is a leading infrastructure investor across energy transition, electrification and decarbonization assets Key statistics Founded 2005 800+ years $20+ billion of collective industry experience invested across clean energy assets1 Capital Commitments
Slide 52: Realisations & distributions driving performance
Realisations & distributions driving performance ECP V ECP IV ECP III As of June 30, 2024 (2022) (2018) (2014) Size ($m) 4,400 3,320 5,050 Associated Co-Investment 2,501 3,644 370 Total 6,901 6,964 5,420 Investing Status Value creation Harvest (67% committed/reserved) Net DPI n/a 36% 140% Net IRR 17
Slide 53: ECP's investment strategy is focused on our proven expertise
ECP’s investment strategy is focused on our proven expertise ECP’s senior partners have been investing in critical electrification and sustainable real asset infrastructure since the mid 1990s and are experienced owners and operators Electricity infrastructure Sustainability infrastructure > Natural
Slide 54: Market leading scale in power and renewables
Market leading scale in power and renewables ECP is the largest private equity owner of U.S. power generation capacity and renewables capacity Private equity power generation ownership Private equity renewable power generation ownership Selected financial sponsors active in power generation total ow
Slide 55: Power: A paradigm shift in demand growth
Power: A paradigm shift in demand growth U.S. Aggregate Demand is Projected to Grow 1.5 – 2.0x by 20401 Datacenters / AI Road transport (EV passenger cars and commercial) Buildings Hydrogen (“H2”) IRA-boosted Industry Industry / Manufacturing (Solar PV, electrolyzers, battery, CHIPS manufacturing an
Slide 56: Power: AI & data center growth expected to drive power demand
Power: AI & data center growth expected to drive power demand As much data will be generated by Investment expected to be made by 2x consumers and business over the next five years relative to the last 10 $1T major tech companies in data centers over the next five years2 years1 More power could be r
Slide 57: Power: AI & data center growth expected to drive power demand
Power: AI & data center growth expected to drive power demand U.S. Power Demand 0% 1.7% 2.4% Average U.S. power Estimate for U.S. electricity demand CAGR Estimate for the U.S. electricity demand CAGR demand growth in the through 2030 prior to AI / data center through 2030, factoring in expectations
Slide 58: Carbon Capture, Utilization & Storage: A pathway to decarbonization
Carbon Capture, Utilization & Storage (“CCUS”): A pathway to decarbonization CCUS is a critical component of hitting Attractive project economics for ethanol The U.S. is a global leader any net zero target and natural gas processing offers lower costs in CCUS All long-term sustainability scenarios i
Slide 59: Environmental infra: the circular economy addressable market
Environmental infra: the circular economy represents a massive addressable market Addressable market and key subsectors Site remediation Waste collection Recycling Building efficiency Green substitution Beneficial reuse and reuse and processing $1 trillion in annual cost savings available today 59
Slide 60: Environmental infra: the circular economy represents a massive addressable market
Environmental infra: the circular economy represents a massive addressable market Problems in materials production and disposal open the door to a diverse set of mitigation opportunities The global waste problem 70% 1.6B tCO2+ 70%+ Global waste generation increase From Annual solid waste management
Slide 61: The ECP edge
The ECP edge ECP’s DNA is rooted in the Electrification, Digital / AI Proprietary origination Electricity, Reliability and and Decarbonization through scale, sector Sustainability sectors driving macro credibility and relationships Early mover advantage and Mid-market fund size Comprehensive commerc
Slide 62: Q&A
Capital Markets Day Q&A Raoul Hughes / Chief Executive Xavier Robert / Chief Investment Officer Doug Kimmelman / Senior Partner & Founder, ECP Tyler Reeder / Managing Partner, ECP Chris Busby / Managing Partner, Bridgepoint Europe Olivier Nemsguern / Managing Partner, BDC Andrew Konopelski / Managin
Slide 63: Strategy
Capital Markets Day Strategy Raoul Hughes / Chief Executive
Slide 64: Ambition
Ambition $200bn >2.5x AUM in the next 5-6 years 64
Slide 65: How we think about growth
How we think about growth Performance Cohesion White Space > Strong investment > Rationale why each > Benefits from scale performance is key to strategy naturally sits now everything we do within the group > But of a size and > High quality > Shared insights dexterity where white businesses space to
Slide 66: Benefits of scale and opportunity to grow
Benefits of scale and opportunity to grow Deeper client relationships Existing Diversification Future Growth Growth Operating leverage 66
Slide 67: A formula for future growth
A formula for future growth Expanding Scaling and Platform sources of diversifying existing enhancing capital verticals M&A Consistent, repeatable, strong returns 67
Slide 68: A formula for future growth
A formula for future growth Expanding Scaling and Platform sources of diversifying existing enhancing capital verticals M&A Consistent, repeatable, strong returns 68
Slide 69: Our investor base
Our investor base The relationships with our > A global base of 1,225+ long-term longstanding investor base is institutional investors well diversified by our #1 priority geography and investor type > These include 14 of the top 20 US State As Bridgepoint scales we Pension Funds (by AUM) further enh
Slide 70: Expanding sources of capital
Expanding sources of capital Deliver more from alternative Continue to develop limited sources of capital in Add new channels partner relationships conventional structures > Deepen our longstanding relationships with some of > Deepen our sovereign > Private wealth the world’s leading investors wealt
Slide 71: A formula for future growth
A formula for future growth Expanding Scaling and Platform sources of diversifying existing enhancing capital verticals M&A Consistent, repeatable, strong returns 71
Slide 72: Scaling and diversifying existing verticals – sequentially scale funds
Scaling and diversifying existing verticals – sequentially scale funds +20% +33% How will we sustain fund-on-fund growth? €7.0bn €5.8bn €4.4bn €3.3bn > Maintain track record of strong investment performance BE VI BE VI BE BEVIII VII ECP IV ECP IV ECP V ECP V > Headroom in the middle market +32% +26%
Slide 73: Scaling and diversifying existing verticals – additional new strategies
Scaling and diversifying existing verticals – additional new strategies Previous examples ORGANIC INORGANIC Bridgepoint Development Capital Bridgepoint Growth Sector focused funds PRIVATE EQUITY Continuation funds Energy transition private equity in the US Tactical opportunities funds CLOs PRIVATE C
Slide 74: A formula for future growth
A formula for future growth Expanding Scaling and Platform sources of diversifying existing enhancing capital verticals M&A Consistent, repeatable, strong returns 74
Slide 75: Platform enhancing M&A
Platform enhancing M&A Strong track record of … and significant opportunity for further platform enhancing M&A... partnerships > New asset classes e.g. secondaries and real estate (2023)1 > Enhanced geographic presence e.g. US > Accelerating access to capital e.g. private Credit (2020)1 wealth Note:
Slide 76: Potential areas for M&A driven expansion
Potential areas for M&A driven expansion Verticals/ Strategic Cohesion Geographies Capital > Secondaries > Quality businesses > Existing private > Real estate > Track record and wealth channel > USA IR capability > Permanent or quasi > Asia > Cultural fit permanent capital 76
Slide 77: What makes Bridgepoint an attractive M&A partner
What makes Bridgepoint an attractive M&A partner TRADITIONAL AMs ALTERNATIVE AMs (INDEPENDENT + UNLISTED LISTED CAPTIVES) Attractively valued stock Value upside potential Cultural compatibility Flat hierarchy Seat at the table Distribution synergies Wider platform synergies 77
Slide 78: Distribution
Capital Markets Day Distribution Raoul Hughes / Chief Executive Doug Kimmelman / Senior Partner & Founder, ECP David Walsh / Head of Europe Investor Relations, ECP Hamish Grant / Head of Investor Services
Slide 79: Significant investment in investor relations resources since IPO
Significant investment in investor relations resources since IPO 79% growth in the > 20 net growth in Net +10 senior people Coverage growth client services team people in IR focused on coverage from 3 locations to 11 London Frankfurt Paris New York Madrid Seoul Los Angeles Tokyo Shanghai Abu Dhabi S
Slide 80: Bridgepoint Private Wealth
Private equity for people Bridgepoint Private Wealth
Slide 81: The private wealth opportunity set
The private wealth opportunity set Market size is known … …regulatory support is driving product development, enabling the better delivery of private markets to individual $295tn investors … …leading to strong demand 50% of global AUM held by individuals Lux UCI Part II >€10bn ELTIF 2.0 Raised from
Slide 82: What is Bridgepoint's roadmap to success?
Bridgepoint’s positioning What is Bridgepoint’s roadmap to success? 1 2 3 Distribution across regions and Clear value proposition Well-built products that deliver client channels, leveraging our to the individual investor our flagship investing strategies local market advantages 82
Slide 83: Path to market: Product development
Path to market: Product development 1984-2024 Onwards: Close-End Vehicles / Flagship Strategies Q2 2025: Open-End Private Equity (Europe & Asia) 83
Slide 84: Path to market: Flagship open-end PE fund launch
Path to market: Flagship open-end PE fund launch Strategy Portfolio construction • A single portfolio of direct private equity investments investing Asia alongside Bridgepoint and ECP flagship strategies • Scaling and leveraging existing investing team resources ECP Flagship North America • Delivere
Slide 85: Path to market: Product development
Path to market: Product development 1984-2024 Onwards: Close-End Vehicles / Flagship Strategies Q2 2025: Open-End Private Equity (Europe & Asia) Q4 2025: Open-End Private Equity (US) 2026: Open-End Credit & Open-End Infrastructure 85
Slide 86: Path to market: Distribution channels
Path to market: Distribution channels Q2 2025 Europe & Asia Capitalising on our home market Q4 2025 US Addressing the largest market 2026+ Retail Building towards the future market 86
Slide 87: We have the foundations for success
Conclusions We have the foundations for success 1 2 3 Attractive and Multiple paths to growth Scalable investment differentiated mid- through distribution and IR teams market offerings channels and products 87
Slide 88: Financials and outlook
Capital Markets Day Financials and outlook Ruth Prior / Group Chief Financial Officer
Slide 89: Key takeaways
Key takeaways Ambition to increase AUM to $200bn over the next 5 to 6 years Our financial model is simple but with timing uncertainties Diversification and fund size growth has driven strong growth since IPO, trend to continue Value from PRE is materially increasing Our listing and balance sheet sup
Slide 90: Our financial model is simple
Our financial model is simple… Management fees Operating expenses Fee related Charged on committed or invested capital c.75% of opex is people related expense earnings (FRE) c.30% of opex is discretionary remuneration FRE is stable & predictable Carried interest Co-investment profits Performance rel
Slide 91: Scale, diversification and quality of earnings enhanced
Scale, diversification and quality of earnings enhanced New key fund 2018 2019 2020 2021 2022 2023 2024 Future M&A Private Equity BE VI BEP BDC IV BE VII BDC V & BG II BE VIII + Bridgepoint BDL III & BCO IV BDL IV Credit Organic Credit funds established CLO II & III CLO IV & V BCO V acquires EQT Cre
Slide 92: Consistent fund performance underpins growth
Consistent fund performance underpins growth Fund details Fund performance at 30 June 2024 Asset class Strategy Established Fund name Vintage Size Gross MOIC DPI1 Gross IRR Quartile Benchmark BE V 2015 €4.0bn 2.3x 1.5x 19% 1st (TVPI) Bridgepoint Hamilton Lane 1984 BE VI 2019 €5.8bn 1.8x 0.5x2 19% 1s
Slide 93: Management fees are stable and contractual
Management fees are stable and contractual c.1.1% 9+ years c.85% of FY25 projected Average management Average contractual fee income is from funds fee life already raised Long term, predictable management fees create earnings stability 93
Slide 94: Strong investment performance and returned capital has driven increasing PRE
Strong investment performance and returned capital has driven increasing PRE… Capital Returned (€bn) PRE (£m) 27% 31% 12% 21% 20% 7% >9% 18% 14% 22% 26% 21% 17% 24%-26% Anticipate Since 2018: 32% CAGR strong year for 3.9 3.9 Since IPO: 34% CAGR 3.5 capital returned 0.2 0.7 0.4 71 2.4 65 High: 140 2.
Slide 95: With material future PRE potential from existing funds
… With material future PRE potential from existing funds Embedded PRE (£m) 3.9x 1,313 759 340 125 554 216 Reported Embedded FY 18 - H1 24 over next cycle Co-investment profits Carried interest Upweighted carry % and greater co-investment in newer funds Note: Only includes future PRE from Bridgepoint
Slide 96: Timing of PRE contribution from existing funds
Timing of PRE contribution from existing funds House P&L contribution from accrued carried interest and co-investment profits Fund Vintage Size carry 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 BE V 2015 €4.0bn 2% BE VI 2019 €5.8bn 5% BE VII 2022 €7.0bn ~20% BDC III 2016 £605m 2
Slide 97: Our strategy is delivering strong growth
Our strategy is delivering strong growth FRE, PRE and EBITDA1 (£m) EBITDA margin up 1.8x 30% 51-54% since 2018 Since 2018: 38% CAGR Since IPO: 44% CAGR On average, PRE has been 139 149 c.50% of 113 High: 287 55 EBITDA 65 Low: 273 67 71 42 53 24 42 74 95 26 47 16 29 25 2018 2019 2020 2021 2022 2023 2
Slide 98: Asset light balance sheet, with firepower for continued investment
Asset light balance sheet, with firepower for continued investment Group balance sheet highlights1 (30 June 2024 pro forma excluding consolidated CLOs) Asset light balance sheet (£m) 689 119 £223m c.£690m 137 Cash £485m Co-investments in Investments (£573m liquidity, incl. undrawn Long term debt fun
Slide 99: Share liquidity increases as lock ups expire
Share liquidity increases as lock ups expire Bridgepoint’s lock-up schedule (m) Progression in % 53% unlocked 100% • Remaining releases of shares from the IPO lock-up are released in July 2025 and 2026 985 985 985 985 985 985 100 50 • Shares issued to ECP are released 336 467 467 from lock-up from 2
Slide 100: Capital allocation
Capital allocation How we allocate capital Distributions per share since IPO (p) 1 Support organic growth 16.4 7.6 2 Investment in Bridgepoint funds 8.0 7.1 3.6 4.0 4.4 2.5 3 Strategic M&A 3.6 4.0 4.4 4.6 2021 2022 2023 H1 2024 4 Capital distributions H1 dividend per share H2 dividend per share Shar
Slide 101: Medium to long term financial targets
Medium to long term financial targets AUM Ambition for AUM to at least double to $200bn over the next 5 to 6 years Fundraising €20bn by the end of 2026, based on current perimeter Margin EBITDA margin to converge with listed peer group at 55-60% Dividend To grow dividend progressively over time Shor
Slide 102: Guidelines for future M&A
Guidelines for future M&A Stronger competitive Enhances earnings Scale & diversification quality and margin Accretive advantage profile Add new verticals, Unlock opportunities and Diversify income streams, EPS accretive in the geographies and strategic accelerate growth timing of fundraises and medi
Slide 103: Our M&A guidelines in practice: Bridgepoint + ECP
Our M&A guidelines in practice: Bridgepoint + ECP Stronger competitive Enhances earnings Scale & diversification quality and margin Accretive advantage profile Added £55m of management fees in H1 24 Brought >170 new LPs to 14% accretive to EPS in Added $26bn of AUM Bridgepoint H1 24 combined EBITDA
Slide 104: Summary
Summary 2.5x AUM EBITDA PRE growth margin Capital allocated > Organic growth > Fund investment > M&A > Progressive dividend 104
Slide 105: Q&A
Capital Markets Day Q&A Raoul Hughes / Chief Executive Ruth Prior / Group Chief Financial Officer Doug Kimmelman / Senior Partner & Founder, ECP
Slide 106: Conclusion
Capital Markets Day Conclusion Raoul Hughes / Chief Executive
Slide 107: We are in a strong position with significant growth opportunity
We are in a strong Continued our long-term position with significant growth trajectory growth opportunity We can grow to $200bn We are well placed to AUM over the next fund deliver against our cycles ambitions 107
Slide 108: Thank you
Capital Markets Day — October 2024 Thank you
Slide 109: Disclaimer
Disclaimer Except where otherwise specified, information contained in this presentation has been prepared as at 24 October 2024 and is for general information only. To the fullest extent permissible by law, Bridgepoint Group plc (the “Company”), its subsidiaries and their affiliates, and their respe
Slide 110: Bridgepoint Group
Bridgepoint Group