Bridgepoint Group (BPT) H1 2024 earnings summary

Executive summary

• H1 2024 results exceeded expectations, driven by strong fundraising, robust investment performance, and capital deployment, leading to upgraded guidance for 2024 and 2025.

• Flagship funds BE VII (€7bn) and ECP V ($4.4bn) closed ahead of targets, underpinning growth and future management fees.

• ECP acquisition is pending final U.S. regulatory clearance, expected to close in Q3 2024, with no fundamental challenges identified.

• The business is well-positioned in a consolidating, high-growth private markets environment, with a differentiated middle-market focus and expanding US exposure.

• Strong pipeline for exits and investments, with €2.1bn agreed returns to LPs in H1 2024, the best period since H1 2022.

Financial highlights

• Fee-related earnings (FRE) up 44% year-over-year to £88.1m pro forma; performance-related earnings (PRE) up 92% to £56.9m pro forma.

• Pro forma H1 EBITDA reached £145m, ahead of guidance.

• Management fees grew 25% to £156.6m; pro forma management fees (with ECP) up to £211.8m.

• Assets under management (AUM) up 8% year-over-year to €42.7bn standalone and €67.3bn pro forma including ECP.

• Interim dividend of 4.6p per share and ongoing share buyback program.

Outlook and guidance

• Upgraded 2024 and 2025 guidance due to strong H1 performance and fundraising.

• Expect to raise over €20bn by end of 2026 across flagship and credit funds; BDC V and ECP VI to become fee paying in late 2024 and 2025.

• FRE margin expected at ~37% in 2024, trending to 35% medium-term.

• PRE expected to be ~25% of total income in 2024 and 2025, at the top end of guidance.

• Effective tax rate guidance unchanged at ~15%.