Our Strategy

Our strategy is focused on creating value for clients and shareholders. Investment performance is the primary metric by which we are judged against our peers and which in turn determines our ability to successfully raise capital and generate future fees and profit. Key performance metrics for the Group include DPI, TVPI, IRR and the pace of deployment. We have the performance track record and platform to grow faster than the market and, as a result, grow the Group’s market share within alternatives.

There are three strategic verticals.

A formula for growth. 


Scaling and diversifying existing verticals

We have the opportunity to expand and diversify our existing strategies through a combination of selectively growing existing funds, organically adding adjacent investment strategies and targeted complementary M&A or team lifts. These smaller tuck-in acquisitions and team lifts will be in areas where we can gain additional expertise and exposure within an existing vertical.

In terms of scaling existing funds, we will remain disciplined and ensure that we raise the correct amount of capital to maintain our investment performance. In terms of diversifying existing verticals, examples could be new geographies in existing strategies or sector-specific funds in existing geographies.

The white space in the middle market has created a clear opportunity to grow.


Expanding sources of capital

We have built client partnerships over decades and will continue to nurture and grow this core group, including through introducing them to our different investment strategies. Delivering our ambition for AUM growth will also require tapping into new sources of capital and therefore new fundraising channels.

So in addition to growing the relationships with our core client base, we will look to increase the contribution to AUM from sovereign wealth funds, unlock the opportunity in private wealth and target increased capital from areas such as insurance. This will require investment over the next cycle, which we expect to partially fund through efficiency gains elsewhere.

We have a strong core client set and have the opportunity to grow it further among the largest blue-chip institutional investors.


Platform-enhancing M&A

The additions of Bridgepoint Credit and ECP have been a success, contributing to the Group from day one.

We will continue to look at similarly transformative M&A in the future. Such acquisitions would enable us to enter new asset classes at scale, enhance our market presence, and increase the diversity of our income streams, as well as bringing in additional expertise and new investors to the platform.

Further acquisitions would accelerate the growth of the Group, unlock opportunities and create material value for shareholders. We will also look at transactions which could enable us to deliver new sources of capital, for example, where it can accelerate access to retail or permanent capital.

We will build the business out further through platform enhancing acquisitions.




Ambition

$200bn of AUM

>2.5x AUM in the next five to six years

Bridgepoint Group is strongly positioned to continue to deliver significant growth.



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