Bridgepoint Group PLC · LSE:BPT
Bridgepoint — H1 2024 Earnings Presentation
33 slides from Bridgepoint's earnings presentation, Jul 19, 2024
Slide 1: 2024 Interim Results
Bridgepoint Paris Office 19 July 2024 2024 Interim Results
Slide 2: Key messages
Key messages Strong financial performance ahead of market expectations in H1 Middle market leadership a clear differentiator ECP now expected to close in Q3 Upgrading guidance for FRE and PRE Reiterating long term confidence in scalability and investment approach 2
Slide 3: Strong performance ahead of market expectations in H1 2024
Strong performance ahead of market expectations in H1 2024 AUM (€bn) Management & other income (£m) FRE (£m) PRE (£m) +8% +25% +44% +92% 56.9 67.3 211.8 88.1 42.7 24.6 156.6 55.2 61.8 26.3 39.5 125.1 32.5 42.9 24.4 156.6 156.6 61.8 61.8 12.7 39.5 42.7 42.7 125.1 42.9 24.4 24.4 12.7 H1 23 H1 24
Slide 4: Strong performance in the half year
Bridgepoint Frankfurt Office Strong performance in the half year
Slide 5: Strong fundraising: flagships closed and good demand for BDC V
Strong fundraising: flagships closed and good demand for BDC V Market opportunity, investment track record and Bridgepoint platform continue to create demand ECP V Progress closed at BDC V closed on Private Wealth BE VII $4.4bn Closed 6th CLO €1.1bn proposition closed at €7bn (plus $2.3bn of fee to
Slide 6: Depth of market and platform results in strong deployment
Depth of market and platform results in strong deployment 94% BE VII 49% BDC IV ECP V 51% + 18% + 15% +11% in H1 2024 in H1 2024 in H1 2024 89% 79% BCO IV BDL III + 12% + 21% in H1 2024 in H1 2024 Strong deployment in H1 across investment strategies Note: PE deployment calculated as a percentage of
Slide 7: Returning Capital
Returning Capital Capital returned (€bn) • Strongest period of capital returns since H1 2022 4.1 3.5 • Strong exit pipeline for H2 1.8 2.4 • H1 Exits included Dorna after 18 years in the portfolio 2.1 1.6 0.3 generating 12x the original investment cost across 1.3 2.3 1.2 2.1 0.4 funds 2021 2022 20
Slide 8: Fund performance driving significant future PRE potential
Fund performance driving significant future PRE potential Total PRE over next cycle 3.6x PRE over last six years (£m) 1,238 193 • Over £1.2bn of future PRE forecast from current Bridgepoint and ECP funds 3.6x 1,045 • Driven by: 340 • Upweighted carry % 33 • Greater co-investment in newer funds 308
Slide 9: Strong performance and macro tailwinds for ECP
Strong performance and macro tailwinds for ECP H1 2024 key figures: ECP V closed ahead of The largest private owner of power generation and renewable assets in target at $4.4bn the US (plus $2.3bn of fee paying co-invest) Recently announced $7bn take private of Atlantica ECP V deployment on target a
Slide 10: Set for a new era of growth in US power demand
Set for a new era of growth in US power demand U.S. Power Demand by Sector 2022-2040, TWh Historical Period Current Trajectory Forecast Period U.S. power demand has been virtually flat 0.6% CAGR 3.2% CAGR 7,000 for nearly 15 years 6,000 Demand could rise ~1.8x over the next ~15 years 5,000 Sources o
Slide 11: H1 2024 Financial Results
Bridgepoint Amsterdam Office H1 2024 Financial Results
Slide 12: Financial highlights
Financial highlights Strong financial performance 44% YoY organic growth in FRE following successful flagship fundraises Strong outlook for near term PRE Balance sheet strengthened through successful pricing of US private placement Interim dividend of 4.6p, plus ongoing share buyback Upgraded guidan
Slide 13: Continued growth in AUM & FPAUM following strong fundraising and capital deployment
Continued growth in AUM & FPAUM following strong fundraising and capital deployment AUM (€bn) FPAUM (€bn) +8% excl. ECP +5% excl. ECP 67.3 36.8 11.0 24.6 2.3 (2.4) 1.6 4.1 (2.7) 1.8 24.3 25.8 39.5 42.7 H1 23 Funds raised Fund Revaluations H1 24 H1 23 Funds raised Funds Realisations H1 24 divestme
Slide 14: Significantly enhanced management fees and robust PRE
Significantly enhanced management fees and robust PRE Management fees and other income (£m) PRE (£m) 1.11% 21% 1.17% 1.16% 1.16% 26% 21% 17% 13% +25% excl. ECP 71.2 211.8 64.9 55.3 56.9 55.2 26.9 125.1 46.9 101.4 32.5 42.6 156.6 101.4 125.1 38.0 24.3 24.4 12.7 H1 22 H1 23 H1 24 2021 2022 2023 2
Slide 15: Continued investment in the platform
Continued investment in the platform Breakdown of expenses (£m) FTE growth +15% excl. ECP +7% excl. ECP 123.7 497 5.8 ECP 46 ECP 23.1 368 379 46 92 FTE 78.9 82.2 £28.9m 21.2 25.7 207 18.0 184 193 Bridgepoint Bridgepoint £94.8m 405 FTE 60.9 61.0 69.1 198 184 186 H1 22 H1 23 H1 24 H1 22 H1 23 H1 2
Slide 16: Further improvement in FRE margin following completion of flagship fundraises
Further improvement in FRE margin following completion of flagship fundraises FRE and underlying EBITDA (£m) 42% 40% +44% organic FRE 145.0 growth YoY 34% 32.5 Total PRE 22% £56.9m 24.4 61.2 55.6 26.3 2x FRE growth YoY +44% Total FRE including ECP 12.7 excl. ECP 38.7 £88.1m 61.8 42.9 22.5 H1 22
Slide 17: Updated guidance
Updated guidance We will continue to present underlying 2024 performance assuming full year of ECP in the combined group, reflected in the guidance below. Guidance Previous guidance If updated: Fundraising BE VII closed at €7bn, at an average fee of 1.5% 1.4% average fee ECP V closed at $4.4bn $4.0b
Slide 18: The longer term perspective
Bridgepoint London Office The longer term perspective
Slide 19: CFO Transition
CFO Transition Adam Jones Ruth Prior 19
Slide 20: Strong long term tail winds in the alternatives market
Strong long term tail winds in the alternatives market AUM in Bridgepoint’s current and potential markets 2021 – 2028 ($tn) Continued outperformance of Secondaries private markets and structural Potential future 1.7 funding challenges in key LP pillars Real Estate 2.2 segments 1.1 15.3 15.3 1.1 14.2
Slide 21: Bridgepoint stands to benefit
Bridgepoint stands to benefit Growth and consolidation will benefit those who can offer differentiation at scale Differentiated, broad and scaled World class distribution Platform enhancing M&A product offering Deep client relationships with Proven ability to deliver M&A backed Pre-eminent middle ma
Slide 22: Successful fundraises and M&A driving growth and AUM diversity
Successful fundraises and M&A driving growth and AUM diversity AUM has grown 2020 +30% H1 2024: €26.6bn €67.3bn 3x since IPO: Total AUM CAGR Total AUM Investment Investor Geography strategy type Delivering 8%1% increased diversity 12% 15% and stronger 37% 13% 45% 42% 41% investor relationships: 19%
Slide 23: Summary: Positive outlook and upgraded guidance
Summary: Positive outlook and upgraded guidance Looking back Looking ahead H1 2024 performance ahead of expectations both standalone Positive outlook for middle market M&A and including ECP ECP expected to close in Q3 Upgraded guidance Good start to 2024 fundraising Continue to invest in our people
Slide 24: Q&A
Bridgepoint Stockholm Office Q&A
Slide 25: Appendix
Bridgepoint Paris Office Appendix
Slide 26: CLO consolidation
CLO consolidation Group exposure to CLOs is £105m Group exposure to CLO investments as at 30 June 2024 (£m) • Risk retention rules require minimum 5% investment into CLOs • IFRS requires consolidation of CLO 1, 3, 4, 5, Assets attributable 6 and CLO 7 (in warehouse), where Group to third party CLO h
Slide 27: Statutory P&L
Statutory P&L Statutory P&L and adjusted items (£m) Note: adjustments further explained in interim report 27
Slide 28: Depth and strength of balance sheet
Depth and strength of balance sheet Balance sheet (£m) (30 June 2024 excluding consolidated CLOs) Split of proforma finance expense 1,053.0 1,053.0 Other non-current assets Non-current liabilities • Expect $575m of USPP notes, including $430m new notes at Goodwill, property leases 178.3 206.3 blen
Slide 29: Overview of Bridgepoint funds, 30th June 2024
Overview of Bridgepoint funds, 30th June 2024 Generated Fee-charging Gross 9 Latest fund Group share of carried interest Fund Fund size AUM AUM Vintage Invested % MOIC / net IRR Hurdle rate Carried interest Catch-up rate carried interest yet? Equity BE IV €4,835m €1,484m - 2008 95% 2.2x 8% 20% 100%
Slide 30: Overview of ECP funds, 30th June 2024
Overview of ECP funds, 30th June 2024 Generated cash Group share carried Fee-charging Latest Fund Mgmt. fee Carried of carried interest Fund Fund size AUM AUM Vintage Invested % MOIC/IRR basis Hurdle rate interest Catch up rate interest yet? Flagship ECP III $5,050m $3,491m $2,194m 2014 ~100% 2.1x C
Slide 31: End notes
End notes Page Note Reference Management fees are underlying and include the management fees relating to consolidated CLOs which are eliminated as part of the 3, 14 1 statutory consolidation and form part of PRE 3, 7, 8, 13, 14, 15, 2 Includes figures for ECP, the acquisition of which is still pendi
Slide 32: Disclaimer
Disclaimer 32 Except where otherwise specified, information contained in this presentation has been prepared as at 19 July 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 resp
Slide 33: Bridgepoint
Sridgepoint