Bridgepoint reports ‘robust’ investment returns despite tough market conditions
Private equity firm Bridgepoint has posted an 11.5 per cent rise in underlying pretax profit despite “more challenging, but improving, market conditions.”
Bridgepoint’s underlying pretax profit was 11.5 per cent higher at £133.8m, which it pinned on “robust investment returns, strong progress on fundraising and fund deployment”.
On a statutory basis, this figure was £86.0m in 2023, down 32.5 per cent from £127.0m in 2022.
The firm, which owns the likes of Itsu and Moto GP, said its assets under management came in at €41bn (£35bn) last year, up 11 per cent from 2022.
Meanwhile, its management fees rose 10 per cent to £265m. The firm said its investment income modestly outperformed expectations despite the tough market conditions.
The firm has proposed a final dividend of 4.4p per share with respect to the second half of 2023, up from 4p in 2022.
Private equity firms have been hit by the slowdown in dealmaking and volatile markets in the wake of war in Ukraine and higher interest rates, which scuppered their ability to exit some investments last year.
Chief executive Raoul Hughes said: “Importantly, Bridgepoint’s strong transaction origination capability and disciplined investment approach continues to deliver high quality returns with all funds remaining on or above plan in both deployment and performance and with a healthy exit pipeline at year end, despite M&A transaction volumes being down globally in 2023.
Bridgepoint inked a deal to buy infrastructure investor ECP for £835m last September. Hughes said the acquisition, expected to close in the second quarter of 2024, would “represent a major step forward in implementing the strategy set out at IPO, adding energy transition infrastructure alongside our private equity and credit businesses”.
He added: “Looking ahead, we will continue to drive growth in the Group and are currently investigating opportunities for further expansion amid industry consolidation… With a diversified investment approach and a strong pipeline of investment and exit activity, Bridgepoint is well placed to navigate 2024 and beyond with confidence.”