Bridgepoint upgrades full-year expectations after solid first half

(Sharecast News) - Bridgepoint Group upgraded its full-year expectations on Friday, after reporting a stronger-than-expected financial performance for the first half, driven by successful fundraising and robust capital deployment. The London-listed firm said that as of 30 June, its assets under management (AUM) stood at €42.7bn, rising to €67.3bn pro forma with the integration of ECP.

Key highlights for the six months ended 30 June included a 25% increase in underlying management fee income to £156m, a 44% rise in fee-related earnings (FRE) to £61.8m, and a 92% jump in performance-related earnings (PRE) to £24.4m.

Underlying EBITDA surged 55% to £86.2m, though reported profit before tax decreased slightly to £48.8m, from £53.1m.

The first half of 2024 marked the strongest period for capital returns since the first six months of 2022, with €2.1bn returned to Limited Partners (LPs) across private equity and credit transactions.

Fundraising efforts for BDC V also saw a strong start, with over €1bn closed by the end of June.

Including ECP on a pro forma basis, Bridgepoint reported underlying management fee income of £211.2m, FRE of £88.1m, and PRE of £56.9m for the first half.

The company said it expected final regulatory clearance and closing of the ECP transaction in the third quarter.

Updated guidance for 2024 now included increased expectations for management fees, a fee-related earnings margin of around 37%, and performance-related earnings as a percentage of total income at approximately 25%, positively impacting projections for 2025 as well.

"Bridgepoint delivered first half results ahead of expectations, with strong underlying profit growth on the back of robust investment performance, successful fundraising and good capital deployment," said chief executive officer Raoul Hughes.

"These results reflect Bridgepoint's leadership position in the attractive mid-market segment.

"Bridgepoint's strong transaction origination capability and disciplined investment approach continues to deliver high quality returns."

Hughes said transactions agreed during the period would return €2.1bn to LPs, marking the strongest period for capital returns since the first half of 2022.

"Our flagship fundraising efforts have met or surpassed our targets and we have seen a strong start to fundraising for BDC V, securing over €1bn.

"ECP continues to trade strongly; with the anticipated completion of this transaction in the third quarter of 2024, contingent on the final regulatory approval, we look forward to continuing to drive growth across the enlarged group."

Looking ahead, Hughes said that with an "encouraging pipeline of strong exits" and signs of increasing transaction activity, Bridgepoint was upgrading its outlook for 2024 and, therefore, for 2025.

"The medium-term growth prospects for private markets are exciting and Bridgepoint is confident in its long-term strategic opportunity."

At 1250 BST, shares in Bridgepoint Group were up 7.95% at 279.6p.

Reporting by Josh White for Sharecast.com.