Bridgepoint : 2023 Annual Report and Accounts

Bridgepoint Group plc	2023
Annual Report & Accounts

Bridgepoint - 2023 Annual Report & Accounts

Contents

Strategic Report

Introduction	2
Financial highlights	3
Bridgepoint at a glance	4
Our purpose and values	6
Chairman's statement	8
Chief Executive's statement	10
Our partnership with ECP	12
Market overview	18
Strategy	22
Our business model	24
Our people	32
Stakeholder engagement and section 172(1) statement	36
How we approach sustainability	42
KPIs: tracking our performance	48
Alternative performance measures	50
CFO statement	54
Our historical performance	64
Viability and going concern statements	65
Risk management	68
TCFD disclosures	74
Non-financial and sustainability information statement	81

Governance

Board of Directors	82
Senior Independent Director's governance review	86
Corporate governance report	87
Nomination Committee report	91
Audit and Risk Committee report	92
ESG Committee report	99
Remuneration Committee report	100
Annual report on remuneration	101
Directors' report and additional disclosures	112
Statement of Directors' responsibilities	116

Financial Statements

Independent auditor's report	117
Consolidated financial statements	126
Notes to the consolidated financial statements	134

Other Information

Non-statutory financial information	194
Shareholder information	196
Glossary	197

Bridgepoint - 2023 Annual Report & Accounts	Strategic Report

Chief Executive's statement

Read more on page 10

Our partnership with ECP

Read more on page 12

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Bridgepoint - 2023 Annual Report & Accounts	Strategic Report

Introduction

Bridgepoint is an international alternative asset management group with offices in Europe, North America and Asia. We invest across private equity, private credit, and following the ECP transaction, infrastructure, creating value by helping build companies with greatly enhanced long-term potential.

The 2023 Annual Report for Bridgepoint Group plc incorporates:

• the Strategic Report;
• the Directors' report, the corporate governance report and the Directors' remuneration report; and
• the financial statements,

each of which has been approved by the Board of Directors of Bridgepoint Group plc.

Adam Jones

Group Chief Financial Officer

and Chief Operating Officer

20 March 2024
Find out more	An explanation of the alternative performance measures
bridgepoint.eu	("APMs") used by the Group, including underlying profit
	before tax, underlying EBITDA and reported and underlying
	earnings per share, is set out on pages 50 to 53 along with a
	reconciliation to statutory measures.

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Bridgepoint - 2023 Annual Report & Accounts	Strategic Report

Financial highlights

2023 AUM includes €21.1bn from ECP	€61.6bn
Assets under management		(2022: €38.0bn)
Management and other fees	£265.3m	(2022: £241.5m)
Underlying FRE	£95.0m	(2022: £74.3m)
PRE	£55.3m	(2022: £64.9m)
Underlying EBITDA	£148.8m	(2022: £139.2m)
Underlying profit before tax	£133.8m	(2022: £120.0m)
Reported profit before tax	£86.0m	(2022: £127.4m)
Underlying earnings per share	14.9p	(2022: 13.8p)

Key

Alternative performance measure

Key performance indicator

Measure defined by IFRS

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Bridgepoint - 2023 Annual Report & Accounts	Strategic Report

Bridgepoint at a glance

Who we are

Bridgepoint Group plc is one of the world's leading private asset growth investors. When the partnership with ECP completes, Bridgepoint will have c. €61.6 billion of assets under management ("AUM") and local presence in Europe, North America and Asia,

combining global scale with local market insight and sector

expertise, consistently delivering strong returns through cycles.

Bridgepoint specialises in private equity, infrastructure

and private credit.

Led by a team of partners who have a long history of working together, Bridgepoint has a well invested platform that provides a strong foundation for future growth. The Group has a differentiated and sustainable investment approach underpinned by a long-standing

commitment to investing responsibly. Environmental, social and governance principles are part of Bridgepoint's DNA, with a set of specific goals set and measured for every investment.

Our investment strategies

Bridgepoint Group plc, €61.6bn AUM

(pro forma for the ECP transaction)

Private Equity		Infrastructure		Private Credit
€28.1bn AUM		€21.1bn AUM		€12.4bn AUM
Bridgepoint Europe		ECP Value-add Infrastructure		Bridgepoint Direct Lending
Bridgepoint Development Capital			Bridgepoint Credit Opportunities
	ECP Forestar Infrastructure Debt
Bridgepoint Growth			Bridgepoint Syndicated Debt
		Read more on pages 12 to 17, and 28 to 29

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34

>330,000

ESG

233

offices worldwide*

nationalities*

people working for

UN PRI 5-star rating

investment-related

Bridgepoint and ECP-

professionals*

* Following completion of ECP transaction

backed companies*

Our year in numbers*

Total operating

Underlying

Total employees (FTEs)

income

EBITDA

391

£321.6m

£148.8m

(2022: £307.4m)

(2022: £139.2m)

Underlying

Underlying

Reported profit

FRE

earnings per share

before tax

£95.0m

14.9p

£86.0m

(2022: £74.3m)

(2022: 13.8p)

(2022: £127.4m)

* Bridgepoint only

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Bridgepoint - 2023 Annual Report & Accounts	Strategic Report

Track record of our capital under management

Total assets under management

€61.6bn

(2022: €38.0bn)

€61.6bn*

Infrastructure

€21.1bn

Private Credit

Private Equity

								€38bn
									€12.4bn
						€33bn		€11bn
				€27bn		€10bn
									€28.1bn
€20bn				€8bn				€27bn
	€19bn
				€23bn
€1bn		€1bn
€19bn				€19bn
	€18bn

2018

2019

2020

2021

2022

2023

*2023 AUM is pro forma for the ECP transaction, all other years are unadjusted

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Bridgepoint - 2023 Annual Report & Accounts	Strategic Report

Our purpose and values

Purpose

Bridgepoint aspires to be a force for good. We drive growth and build value by connecting people, capital, ideas and opportunity.

Values

In everything we do, from committing investors' capital, to working with portfolio companies, to supporting our teams, we're guided by our values:

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Bridgepoint - 2023 Annual Report & Accounts	Strategic Report

We do what we say

We do

the right thing

We act

with intelligence and humility

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Bridgepoint - 2023 Annual Report & Accounts	Strategic Report

Chairman's statement

William Jackson

William Jackson is Chairman of Bridgepoint's Board and co-Chair of the Bridgepoint Europe Investment Committee.

Strong performance in 2023 and well placed for continued growth

I am pleased to report that Bridgepoint enjoyed a strong year

of performance in 2023, delivering a good set of financial results and making meaningful progress with the company's development strategy with the addition of ECP to the platform.

The Group's AUM now stands at €62 billion following successful fundraisings and taking into account the announcement of the partnership with ECP. Both have enabled Bridgepoint to hit its five-year targeted AUM (set at our 2021 IPO) in under three years, reflecting the long-term growth potential of the business.

In 2023, Bridgepoint recorded underlying profit growth of 12% for the year and all funds remained on target or better in terms of deployment and performance with the most recent fully invested private equity funds, BE VI and BDC III, ranking in the top quartile for their respective vintages and with valuation growth largely driven by strong underlying company trading performance.

Fundraising remains on track, with BE VII expected to close this quarter with some €7 billion of capital commitments. Important new fundraisings for BDC V and BDL IV are now well underway, alongside other funds entering the market in 2024.

Having delivered these results, the Bridgepoint platform ended a productive 2023, and is strategically well-placed and well-resourced in what is a rapidly changing environment in alternative asset management. This positioning has been achieved by continuing to diversify and deepen Bridgepoint's position across its three different middle market verticals of private equity, credit and shortly infrastructure. Each vertical is focused on value-add growth investing.

Deepening our leadership as the platform scales

With Bridgepoint's increased scale in 2023, it was a natural time to separate the roles of Chairman and Chief Executive. This has allowed me to concentrate on my role as Chair of the Group and the private equity business with Raoul Hughes assuming the role of Chief Executive. As a long-standing managing partner, Raoul is extremely well qualified to continue to lead Bridgepoint and maintain the culture and values that have been key to our success.

Since assuming his role, Raoul has introduced a new management structure to oversee the much-enlarged business and strengthened the balance sheet with new long-term financing to enable the company to continue to grow and further diversify.

Our executive strength is supported by the high-calibreNon-Executive Directors on the Board, whose substantial experience and strategic insight has been invaluable to the Group.

Within the next 12 months, the firm expects to appoint at least one additional Non-Executive Director to enhance the Board's expertise and diversity.

ECP significantly enhances the investment platform

The agreement to add ECP to the Bridgepoint platform was a particular highlight of 2023 and at completion will position the Group strongly for the future. It will significantly enhance the reach of the organisation in its marketplace by adding to Bridgepoint's overall capabilities which, frankly, are already not typically seen in middle-market peers.

ECP and its management team will add an important third pillar to the business and significantly accelerate Bridgepoint's stated strategy at the time of the IPO of scaling through product and geographic diversification. Fundraising for ECP's flagship fund, ECP V, which has a fund target of $4 billion, is set to close

in April.

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