Bridgepoint Group (BPT) H1 2024 earnings summary

Executive summary

• Delivered H1 2024 results ahead of expectations, driven by strong fundraising, robust investment performance, and capital deployment, with upgraded guidance for 2024 and 2025 and increased confidence in the medium-term outlook.

• Completed flagship fundraisings ahead of schedule, including BE VII (€7bn) and ECP V ($4.4bn), supporting upgraded guidance and future management fees.

• ECP acquisition expected to close in Q3 2024, enhancing platform scale, US exposure, and income diversification.

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

• Middle market leadership and successful fundraising underpin growth and scalability.

Financial highlights

• AUM up 8% year-over-year to €42.7bn standalone and €67.3bn pro forma including ECP; Fee Paying AUM at €25.8bn standalone and €36.8bn pro forma.

• Management fee income up 25% to £156.0m; pro forma including ECP: £211.2m.

• FRE up 44% to £61.8m; pro forma FRE: £88.1m; PRE up 92% to £24.4m; pro forma PRE: £56.9m.

• Underlying EBITDA up 55% to £86.2m; pro forma underlying EBITDA: £145.0m.

• Interim dividend of 4.6p per share announced, with ongoing share buyback and strengthened balance sheet via US private placement.

Outlook and guidance

• Upgraded 2024 and 2025 guidance based on strong H1 performance, with FRE margin expected around 37% in 2024 and c.35% until BE VIII generates fees.

• PRE expected to be around 25% of total income in both 2024 and 2025.

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

• Effective tax rate guidance remains at 15% post-ECP transaction.

• Positive outlook for portfolio exits, with several transactions in exclusivity for H2 2024.