Bridgepoint lifts guidance after bumper first half
Bridgepoint has raised its guidance for 2024 and 2025 after its first-half results beat management’s expectations.
The alternative asset manager – which invests across private equity and debt – saw its assets under management (AUM) rise by eight per cent year-on-year to €42.7bn (£36bn), thanks to strong increases in fee-related earnings and performance-related earnings.
However, fee-paying AUM came in at €25.8bn, showing that Bridgepoint has significant ‘dry powder’ to deploy.
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Bridgepoint reported a 55 per cent year-on-year increase in underlying core earnings to £86.2m.
“The outlook for 2024 and 2025 is being upgraded based on better-than-expected financial performance in the first half of 2024, flagship fundraises completed on or ahead of target, strong deployment and exits (including a healthy pipeline heading into the summer), and signs of increasing transaction activity in the markets in which Bridgepoint operates,” said chief executive Raoul Hughes.
Bridgepoint also reported “a significant uptick in activity” in its credit arm, with its direct lending team deploying almost €1bn in the first half of 2024.
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The alternative asset manager said that its direct lending team committed to invest in 15 deals over the period, comprising 10 new primary deals and five further commitments to existing investments.
“As a lender to predominantly mid-market, private equity-backed companies, this increased level of activity further demonstrates the recovery of deal volumes,” said Hughes.
“In Bridgepoint Credit Opportunities, the investment pace has held steady this year with the latest vintage, BCO IV, now 79 per cent committed.”
AUM for Bridgepoint’s credit business rose by €0.1bn to €12.5bn over the period, with the deployment of capital in the BDL III and BCO IV strategies and the launch of CLO 6 in March offset by cancellation of commitments in mature funds.
It said that fundraising for BDL IV has started and is expected to commence capital deployment later this year.
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“Successful fundraising and a strong pipeline of both investments and exits position Bridgepoint to navigate the rest of the year with confidence,” said Hughes.
“With middle-market leadership a clear differentiator for Bridgepoint, the platform is well-positioned to capitalise on both market growth and the increasing trend towards industry consolidation.
“Opportunities for inorganic growth and expansion into new asset classes continue to be actively explored, alongside the organic scaling and broadening of Bridgepoint’s existing investment strategies.”
