Bridgepoint Group PLC · LSE:BPT
Bridgepoint — H1 2022 Earnings Presentation
24 slides from Bridgepoint's earnings presentation, Jul 26, 2022
Slide 1: Bridgepoint Group Plc 2022 Half Year Results
Bridgepoint Group Plc 2022 Half Year Results
Slide 2: William Jackson
William Jackson
Slide 3: Key highlights today
Key highlights today ▪ Financial performance ahead of expectations ▪ Fund raising making good progress ▪ Fund performance strong at June 2022 ▪ Outlook for 2022 unchanged ▪ Business well positioned for current times with multiple routes to delivering performance | 3 |
Slide 4: Bridgepoint H1 2022 results: performance snapshot
Bridgepoint H1 2022 results: performance snapshot H1 financial performance1 (£m) Fundraising update +15% ▪ BE VII first close at €4 billion in Q2 2022 ▪ Further closings since and now in final third of its fundraising +17% 140.1 +23% ▪ Transition from BE VI to BE VII formalised with May 122.2 2022 d
Slide 5: Robust business model well positioned for the times
Robust business model well positioned for the times Outstanding 30 year track Disciplined platform well Funds Proven Highly record of portfolio positioned delivering resilience in experienced compelling construction for the consistent private equity management investor and underpins opportunities pe
Slide 6: Consistent performance over time
Consistent performance over time Bridgepoint Europe 3-year rolling vintage money multiple returns for all investments (gross) 2 4.0x 3.5x 3.5x 3.2x 3.0x 2.9x 3.0x 2.8x 2.7x 2.6x 2.5x 2.5x 2.3x 2.2x 2.2x 2.1x 2.0x MM 2.0x 1.5x 1.0x 0.5x 0.0x 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 7: Building fund resilience: gatekeeping metrics
Building fund resilience: gatekeeping metrics ▪ Proven, high quality middle market businesses ▪ Domestic or pan-European champions in attractive niches with strong and sustainable end-market growth ▪ Attractively valued companies with operationally-led value creation potential − International expans
Slide 8: Disciplined fund construction
Disciplined fund construction BE V BE VI Asset Diversification 16 Asset Diversification 18 Asset as % of Total Capital Max 12% Asset as % of Total Capital Max 11% Geographic Diversification (HQ) 7% UK 10% 4% 19% France 9% US Global 18% 41% Nordic 10% Iberia 18% Poland & Turkey DACH 20% 5% Netherland
Slide 9: Strong fund performance illustrated by high quality metrics
Strong fund performance illustrated by high quality metrics Key features of Bridgepoint Fund performance: ▪ Bridgepoint private equity performance strong across all three metrics of net IRR, TV/PI and D/PI ▪ Reported performance based on a high level of realised value – not just paper gains ▪ Consis
Slide 10: The right kind of returns
The right kind of returns ▪ Our approach to ESG is about constant improvement: we invest in businesses at all stages of their ESG maturity curve and we make a difference ▪ Recent Bridgepoint progress includes: ▪ Became carbon neutral in 2021 ▪ All offices now operate on 100% renewable electricity ▪
Slide 11: Adam Jones
Adam Jones
Slide 12: Growth of AUM & FPAUM…
Growth of AUM & FPAUM… AUM (€bn) FP AUM (€bn) +30% +6% (3.9) 5.4 7.1 3.2 (2.1) 37.1 28.5 17.7 18.8 H1 2021 AUM Fundraising Capital returned Revaluations H1 2022 AUM H1 2021 FPAUM Fundraising / Divestments H1 2022 FPAUM invested FP AUM will step up in the second half once the date of transition to BE
Slide 13: … 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 (£m) Annualised management fee margin (%) +15% 140.1 0.5 <1% 1.23% 1.22% 122.2 0.4 38.7 28% 25.5 96.3 100.9 72% H1 2021 H1 2022 H1 2021 H1 2022 Management Fees Investment Income Other I
Slide 14: Investment in the platform in line with plan
Investment in the platform in line with plan Breakdown of operating expenses3 (£m) FTE growth +15% +13% 368 320 78.3 69.2 184 17.4 13.7 154 55.5 60.9 166 184 H1 2021 H1 2022 H1 2021 H1 2022 Personnel Expenses Other Expenses Investment Professionals Central Investment in Equity, Credit, IR and Specia
Slide 15: Increased EBITDA driven by revenue growth
Increased EBITDA driven by revenue growth Underlying EBITDA4 (£m) 44% 43% 17% 61.8 53.0 H1 2021 H1 2022 Underlying EBITDA Underlying EBITDA margin First revenue from BE VII in H2 2022 will drive significant progress towards longer term FRE margin of 45-50% | 15 |
Slide 16: Limited costs below EBITDA
Limited costs below EBITDA Depreciation & Amortisation (£m) Finance costs5 (£m) Decrease in ‘other’ driven by 9.1 reduced borrowings after repaying RCF in July 2021 & 1.5 lower amounts payable to 3rd 6.3 0.5 party investors in BE V 6.0 co-investment vehicle 1.6 0.5 7.1 5.3 2.3 4.2 0.9 0.7 1.4 H1 202
Slide 17: Simple and capital light balance sheet
Simple and capital light balance sheet High level overview of the underlying balance sheet 6 (30 June 2022 excluding CLOs) 986.0 986.0 Non-current liabilities £239m Other non-current assets 199.6 Deferred consideration and Goodwill, property leases 273.0 property leases and carried Interest Cash8 as
Slide 18: Statutory P&L
Statutory P&L Statutory P&L and exceptional items H1 2021 (£m) H1 2022 (£m) (0.7) (1.2) EBITDA 61.8 61.1 61.1 53.0 51.8 H1 21 Underlying Exceptional costs H1 21 Reported H1 22 Underlying Exceptional costs H1 22 Reported EBITDA EBITDA EBITDA EBITDA (0.7) (1.5) (1.4) (1.2) (1.6) 0.9 PBT 42.3 40.4 51.9
Slide 19: Dividend and guidance
Dividend and guidance Dividend ▪ Interim dividend of 4.0 pence per share, a 10 per cent increase from the 2021 final dividend ▪ We expect to grow our dividend progressively as our business scales Guidance ▪ Transition to BE VII, subject to competition clearance, likely took place in mid May 2022 ▪ A
Slide 20: William Jackson
William Jackson
Slide 21: Outlook for H2 2022
Outlook for H2 2022 Strong performance in H1 underpins confidence in delivering expectations for FY 2022 Continued strong investment activity despite the macro Resilience built through disciplined fund construction and thematic origination Excited by strategic growth prospects Confident in deliverin
Slide 22: Q&A
Q&A
Slide 23: End notes
End notes Page number Note Reference Page 4 1 EBITDA and PBT are underlying and exclude exceptional costs, amortisation and exceptional net finance income and expense Assets shown are the current footprint which excludes deals from Bridgepoint’s discontinued offices; unrealised BE V & VI assets incl
Slide 24: 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