Bridgepoint Group plc | 2023 |
Annual Report & Accounts |
Bridgepoint - 2023 Annual Report & Accounts
Contents
Strategic Report
Introduction | 2 |
Financial highlights | 3 |
Bridgepoint at a glance | 4 |
Our purpose and values | 6 |
Chairman's statement | 8 |
Chief Executive's statement | 10 |
Our partnership with ECP | 12 |
Market overview | 18 |
Strategy | 22 |
Our business model | 24 |
Our people | 32 |
Stakeholder engagement and section 172(1) statement | 36 |
How we approach sustainability | 42 |
KPIs: tracking our performance | 48 |
Alternative performance measures | 50 |
CFO statement | 54 |
Our historical performance | 64 |
Viability and going concern statements | 65 |
Risk management | 68 |
TCFD disclosures | 74 |
Non-financial and sustainability information statement | 81 |
Governance
Board of Directors | 82 |
Senior Independent Director's governance review | 86 |
Corporate governance report | 87 |
Nomination Committee report | 91 |
Audit and Risk Committee report | 92 |
ESG Committee report | 99 |
Remuneration Committee report | 100 |
Annual report on remuneration | 101 |
Directors' report and additional disclosures | 112 |
Statement of Directors' responsibilities | 116 |
Financial Statements
Independent auditor's report | 117 |
Consolidated financial statements | 126 |
Notes to the consolidated financial statements | 134 |
Other Information
Non-statutory financial information | 194 |
Shareholder information | 196 |
Glossary | 197 |
Bridgepoint - 2023 Annual Report & Accounts | Strategic Report |
Chief Executive's statement
Read more on page 10
Our partnership with ECP
Read more on page 12
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Bridgepoint - 2023 Annual Report & Accounts | Strategic Report |
Introduction
Bridgepoint is an international alternative asset management group with offices in Europe, North America and Asia. We invest across private equity, private credit, and following the ECP transaction, infrastructure, creating value by helping build companies with greatly enhanced long-term potential.
The 2023 Annual Report for Bridgepoint Group plc incorporates:
- the Strategic Report;
- the Directors' report, the corporate governance report and the Directors' remuneration report; and
- the financial statements,
each of which has been approved by the Board of Directors of Bridgepoint Group plc.
Adam Jones
Group Chief Financial Officer
and Chief Operating Officer
20 March 2024 | |
Find out more | An explanation of the alternative performance measures |
bridgepoint.eu | ("APMs") used by the Group, including underlying profit |
before tax, underlying EBITDA and reported and underlying | |
earnings per share, is set out on pages 50 to 53 along with a | |
reconciliation to statutory measures. |
2
Bridgepoint - 2023 Annual Report & Accounts | Strategic Report |
Financial highlights
2023 AUM includes €21.1bn from ECP | €61.6bn | |
Assets under management | (2022: €38.0bn) | |
Management and other fees | £265.3m | (2022: £241.5m) |
Underlying FRE | £95.0m | (2022: £74.3m) |
PRE | £55.3m | (2022: £64.9m) |
Underlying EBITDA | £148.8m | (2022: £139.2m) |
Underlying profit before tax | £133.8m | (2022: £120.0m) |
Reported profit before tax | £86.0m | (2022: £127.4m) |
Underlying earnings per share | 14.9p | (2022: 13.8p) |
Key
Alternative performance measure
Key performance indicator
Measure defined by IFRS
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Bridgepoint - 2023 Annual Report & Accounts | Strategic Report |
Bridgepoint at a glance
Who we are
Bridgepoint Group plc is one of the world's leading private asset growth investors. When the partnership with ECP completes, Bridgepoint will have c. €61.6 billion of assets under management ("AUM") and local presence in Europe, North America and Asia,
combining global scale with local market insight and sector
expertise, consistently delivering strong returns through cycles.
Bridgepoint specialises in private equity, infrastructure
and private credit.
Led by a team of partners who have a long history of working together, Bridgepoint has a well invested platform that provides a strong foundation for future growth. The Group has a differentiated and sustainable investment approach underpinned by a long-standing
commitment to investing responsibly. Environmental, social and governance principles are part of Bridgepoint's DNA, with a set of specific goals set and measured for every investment.
Our investment strategies
Bridgepoint Group plc, €61.6bn AUM
(pro forma for the ECP transaction)
Private Equity | Infrastructure | Private Credit | ||
€28.1bn AUM | €21.1bn AUM | €12.4bn AUM | ||
Bridgepoint Europe | ECP Value-add Infrastructure | Bridgepoint Direct Lending | ||
Bridgepoint Development Capital | Bridgepoint Credit Opportunities | |||
ECP Forestar Infrastructure Debt | ||||
Bridgepoint Growth | Bridgepoint Syndicated Debt | |||
Read more on pages 12 to 17, and 28 to 29 |
15 | 34 | >330,000 | ESG | 233 | |||||||||
offices worldwide* | nationalities* | people working for | UN PRI 5-star rating | investment-related | |||||||||
Bridgepoint and ECP- | professionals* | ||||||||||||
* Following completion of ECP transaction | backed companies* | ||||||||||||
Our year in numbers* | |||||||||||||
Total operating | Underlying | ||||||||||||
Total employees (FTEs) | income | EBITDA | |||||||||||
391 | £321.6m | £148.8m | |||||||||||
(2022: £307.4m) | (2022: £139.2m) | ||||||||||||
Underlying | Underlying | Reported profit | |||||||||||
FRE | earnings per share | before tax | |||||||||||
£95.0m | 14.9p | £86.0m | |||||||||||
(2022: £74.3m) | (2022: 13.8p) | (2022: £127.4m) |
* Bridgepoint only
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Bridgepoint - 2023 Annual Report & Accounts | Strategic Report |
Track record of our capital under management
Total assets under management
€61.6bn
(2022: €38.0bn)
€61.6bn*
Infrastructure
€21.1bn
Private Credit
Private Equity
€38bn | ||||||||||
€12.4bn | ||||||||||
€33bn | €11bn | |||||||||
€27bn | €10bn | |||||||||
€28.1bn | ||||||||||
€20bn | €8bn | €27bn | ||||||||
€19bn | ||||||||||
€23bn | ||||||||||
€1bn | €1bn | |||||||||
€19bn | €19bn | |||||||||
€18bn | ||||||||||
2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
*2023 AUM is pro forma for the ECP transaction, all other years are unadjusted
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Bridgepoint - 2023 Annual Report & Accounts | Strategic Report |
Our purpose and values
Purpose
Bridgepoint aspires to be a force for good. We drive growth and build value by connecting people, capital, ideas and opportunity.
Values
In everything we do, from committing investors' capital, to working with portfolio companies, to supporting our teams, we're guided by our values:
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Bridgepoint - 2023 Annual Report & Accounts | Strategic Report |
We do what we say
We do
the right thing
We act
with intelligence and humility
7
Bridgepoint - 2023 Annual Report & Accounts | Strategic Report |
Chairman's statement
William Jackson
William Jackson is Chairman of Bridgepoint's Board and co-Chair of the Bridgepoint Europe Investment Committee.
Strong performance in 2023 and well placed for continued growth
I am pleased to report that Bridgepoint enjoyed a strong year
of performance in 2023, delivering a good set of financial results and making meaningful progress with the company's development strategy with the addition of ECP to the platform.
The Group's AUM now stands at €62 billion following successful fundraisings and taking into account the announcement of the partnership with ECP. Both have enabled Bridgepoint to hit its five-year targeted AUM (set at our 2021 IPO) in under three years, reflecting the long-term growth potential of the business.
In 2023, Bridgepoint recorded underlying profit growth of 12% for the year and all funds remained on target or better in terms of deployment and performance with the most recent fully invested private equity funds, BE VI and BDC III, ranking in the top quartile for their respective vintages and with valuation growth largely driven by strong underlying company trading performance.
Fundraising remains on track, with BE VII expected to close this quarter with some €7 billion of capital commitments. Important new fundraisings for BDC V and BDL IV are now well underway, alongside other funds entering the market in 2024.
Having delivered these results, the Bridgepoint platform ended a productive 2023, and is strategically well-placed and well-resourced in what is a rapidly changing environment in alternative asset management. This positioning has been achieved by continuing to diversify and deepen Bridgepoint's position across its three different middle market verticals of private equity, credit and shortly infrastructure. Each vertical is focused on value-add growth investing.
Deepening our leadership as the platform scales
With Bridgepoint's increased scale in 2023, it was a natural time to separate the roles of Chairman and Chief Executive. This has allowed me to concentrate on my role as Chair of the Group and the private equity business with Raoul Hughes assuming the role of Chief Executive. As a long-standing managing partner, Raoul is extremely well qualified to continue to lead Bridgepoint and maintain the culture and values that have been key to our success.
Since assuming his role, Raoul has introduced a new management structure to oversee the much-enlarged business and strengthened the balance sheet with new long-term financing to enable the company to continue to grow and further diversify.
Our executive strength is supported by the high-calibreNon-Executive Directors on the Board, whose substantial experience and strategic insight has been invaluable to the Group.
Within the next 12 months, the firm expects to appoint at least one additional Non-Executive Director to enhance the Board's expertise and diversity.
ECP significantly enhances the investment platform
The agreement to add ECP to the Bridgepoint platform was a particular highlight of 2023 and at completion will position the Group strongly for the future. It will significantly enhance the reach of the organisation in its marketplace by adding to Bridgepoint's overall capabilities which, frankly, are already not typically seen in middle-market peers.
ECP and its management team will add an important third pillar to the business and significantly accelerate Bridgepoint's stated strategy at the time of the IPO of scaling through product and geographic diversification. Fundraising for ECP's flagship fund, ECP V, which has a fund target of $4 billion, is set to close
in April.
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Bridgepoint Group plc published this content on 21 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 March 2024 10:49:15 UTC.