All about Bridgepoint’s London IPO

Summary

  • Bridgepoint Advisers, a private equity firm is coming up with an initial public offer on the London Stock Exchange.
  • The company is aiming for a valuation of £2 billion upon its exchange listing and would use the issue proceed for its future growth plans and provide greater strategic flexibility.

Private Equity firm Bridgepoint Advisers Limited is coming with an initial public offer (IPO), aiming to raise at least £300 million by offering new ordinary shares and some shares sell from existing Bridgepoint shareholders. Bridgepoint, as of 31 March 2021 was managing around €27.4 billion (£23.42 billion) of assets across the equity and debt fund, and it had posted a profit of around £191.8 million in 2020.

The firm plans to list its shares on the London Stock Exchange and use IPO proceeds to repay existing debts, support the company’s future growth plans and provide greater strategic flexibility.

The company is expected to be valued at £2 billion upon its listing. The company targets free float of at least 25% of issued share immediately, and a further 15% of the offer can be made available pursuant to an over-allotment option. JP Morgan and Morgan Stanley are joint global coordinators for the company’s IPO.

Bridgepoint Advisers

The private equity firm was formed in 2000 after the company’s existing managers acquired a majority stake from NatWest Group. The company aims to grow its investor’s returns who participate in various funding rounds of the company. The company invest responsibly in well-managed businesses and help businesses expand and prosper. Bridgepoint Advisers raised close to €2 billion from investors through Europe I fund in 2002. After that, the company successfully closed the subsequent series of European funds. The latest funding round was the Europe V fund of €4 billion, bringing the total amount of committed capital to €27.4 billion, raised to date.

Bridgepoint Advisers, with its global reach, invest the committed capital in middle-market businesses worldwide through its distinct strategies:

  • Middle Market: Businesses valued between €200 million and €1.5 billion are selected for investment via Bridgepoint's flagship buyout fund. Companies with earnings growth potential, strong market position and competitive advantage are some of the investment criteria set by Bridgepoint Advisers. In the last ten years, the company has made over 100 investments from six broad sectors like Business Services, Consumer,Financial Services, Healthcare, MedTech & Pharma, Manufacturing & Industrials and Digital, Technology & Media. 
  • Lower Mid-cap companies: Investment strategy is implemented via Bridgepoint Development Capital which aims to invest in lower middle-companies valued up to £200 million. The businesses which have the potential to grow revenue and profits are selected for investment. The Bridgepoint Advisers shares management and expertise with the portfolio companies to help the business expand and prosper.
  • Early-Stage Businesses: In this strategy, investment is made via Bridgepoint Growth fund in companies with significant operations in the UK and Nordic region, and which are valued between €5 million and €20 million. The fund focuses on digital technology driven companies to achieve growth under this strategy.
  • Credit investment: Bridgepoint Credit, a private credit platform, invests across the capital structure and risk-reward spectrum through three investment strategies, Syndicated Debt, Direct Lending and Credit Opportunities.

Key Investment by Bridgepoint Advisers

The firm’s key investment includes dining chain Itsu, Burger King operations in France and the UK, Europe’s largest insurance broker, CEP, cycle retailers Wiggle, sports management firm Dorna and many more.

In recent times, private equity deals are on the rise in the United Kingdom. In 2020, 889 private equity deals were executed valued at £87.2 billion, which according to market experts was possible because of buyout firms taking advantage of Covid-19 and Brexit to snap up companies at lower valuations.

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