2015 Bridgepoint Annual Review
1 contents introduction
Jonathan Zhou 3 Introduction Partner, Shanghai 4 Discover Bridgepoint A long-established and 8 New investments 24 Managing Partner’s overview experienced investor 34 Investment and sector expertise 72 Current investments 74 Investing responsibly For over 25 years we’ve partnered 82 Bridgepoint Charitable Trust with management teams across Europe 86 Our offices Performance- to build great companies. Using local driven insight, expertise and resource, we invest in high-performing, well- managed businesses with the potential to grow through expansion, operational Thoughtful transformation or via acquisition. one Bridgepoint Our aim is to build stronger, broader- based businesses with greatly enhanced long-term growth potential. Guided by a clear set of values Straightforward 2 that set out the expectations of the 3 Firm about how we do business and underscore the duty to invest Performance-driven responsibly, our aim is to achieve We settle for nothing less than high quality returns for our investors, superior performance achieved by entrepreneurship, initiative, intelligent colleagues, portfolio companies and judgement and teamwork their employees. Thoughtful We always seek to make a difference – These values are shared across for investors, companies or in our duty our Firm and are fundamental to our as a responsible investor within the broader community professional and personal conduct. Straightforward We believe they define us and help us We are straightforward, open professionals who act without arrogance and embrace maintain the highest levels of corporate the views of others without prejudice governance and apply high standards of professionalism uniformly across Bridgepoint.
Bridgepoint Annual Review 2015 Bridgepoint Annual Review 2015 Discover Bridgepoint Discover Bridgepoint
Discover Bridgepoint Our locations We have a local presence in every major European private 01 Frankfurt 06 Paris equity market. With a network of eight European bases 02 Istanbul 07 Shanghai Bridgepoint has been investing region. These have generated an and a portfolio office in Shanghai, we can deploy resources 03 London 08 Stockholm in Europe, and specifically in exceptionally deep and broad effectively when identifying and completing transactions as 04 Luxembourg 09 Warsaw 05 Madrid middle market businesses, for over flow of high quality investment well as manage value creation in the businesses we support. 25 years. It is a place we know opportunities as well as compelling and understand. The Firm has returns for our investors, allowing us been able to do so successfully in turn to become one of the leading thanks to its people, its network private equity investors in Europe. and relationships across the
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3 9 4 1 In numbers 6
5 2 7 €12.7bn €9.1bn 4 5 funds under returned to investors management in last 10 years
€25.7bn €20.5bn Investors by location total value of transactions of committed capital Over 250 investors from % % % % over 30 countries in 58 36 2 4 from €10.4bn invested raised to date Bridgepoint funds Americas European Middle East Australasia since 2000
Investors by type
Bridgepoint has a blue chip Pension funds 58% Asset manager 2% 90,000 320 investor base comprising of Fund of funds 10% Bridgepoint 2% public and private pension funds, over 90,000 people currently add-on acquisitions made Insurance 11% Bank 2% asset managers, family offices, Sovereign wealth fund 8% Family office 1% employed by Bridgepoint by Bridgepoint companies sovereign authorities and insurance portfolio companies in last 10 years companies around the world Endowment 6%
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Ian Dougan Through its portfolio... Media & Technology Managing Director, Operational Support Group €1.5 billion invested in 10 companies in European Media & Business Services Technology sector €1.7 billion invested in the last 10 years. in 15 companies in the European Business Services sector in the last 10 years.
€1bn €1.7bn bn €1.4bn €1.5 6 €1.9bn €500m 7
Manufacturing & Industrials €1 billion invested in seven companies in the European Consumer Manufacturing Healthcare €1.9 billion invested & Industrials sector €1.4 billion invested in 14 companies in in the last 10 years. in 10 companies Consumer sector in the European in the last 10 years. Healthcare sector Financial Services in the last 10 years. €500 million invested in four companies in Portfolio growth in 2015 the European Financial Services sector in the 9% 14% last 10 years. Revenue EBITDA
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Bright futures Bridgepoint-owned Identifying businesses made 42 additional acquisitions in the year as they value pursued consolidation and internationalisation strategies. Investments made in 2015 In 2015 we invested €950m in seven new businesses with a total enterprise value of €2.4bn. In 2015 Europe continued to provide a We also have a long-standing track high quality range of growth-focused record of acquiring sector leaders middle market businesses. Bridgepoint’s operating in fragmented markets and broad investment and operational using them as platforms for consolidation resources were strongly positioned at accretive valuations. to exploit the opportunities provided Generating ‘internal growth’ through in Europe as the home of numerous operational improvement was also an world-leading domestic and exporting important driver of earnings growth. enterprises. We are well resourced to deliver far- Our focus on six sectors brings us an reaching business transformation in depth understanding of market trends thanks to an extensive team including as well as extensive industrial networks an Operational Support Group, Portfolio and relationships. In certain cases it can Development Office in Shanghai and a 8 9 also generate investment opportunities Procurement Team that is unique within outside intermediated processes as well European middle market private equity. as the market knowledge to accelerate growth in current portfolio companies. In 2015 we sought out sectors with strong underlying structural growth drivers growing well ahead of the broader economy or where Europe has global competitive advantage. Similarly, “Broad investment and Business businesses with high visibility of earnings operational resources and contracted income that were overt were strongly positioned to Exceeding growth beneficiaries of economic recovery were exploit the opportunities targets Fund investments collectively on our radar. provided by Europe as the generated 9% and 14% year- home of numerous world- Bridgepoint investments on-year average revenue leading domestic and returned over €1.8bn of EBITDA growth. capital to investors with exporting enterprises.” seven major exits. Guy Weldon partner and Chief Investment Officer
Bridgepoint Annual Review 2015 Bridgepoint Annual Review 2015 New investments New investments
Anaveo
Anaveo is a French provider of electronic security solutions such as video surveillance, security access control and intrusion N ot disclosed detection to small and medium sized businesses. Transaction size Established in 1995 and headquartered in Lyon, it has installed its security systems at over 8,000 sites across France for a predominantly retail client base of mostly independent retailers, €43.7m as well as larger integrated chains. It has a network of 11 agencies Revenue and 270 employees across France and in 2011 opened a subsidiary in China to set up a direct sourcing strategy and establish a commercial presence there. The company designs its leading 270 products using an in-house research and development team, Employees managing new product development and the group’s proprietary software solutions. Sector The French video surveillance market has demonstrated Business Services resilient historic growth and is forecast to expand at 5% p.a. based Location on continued penetration of video surveillance systems, upgrades France to latest technology solutions and a growing replacement market 10 Directors 11 reflecting the progressive shift within its target installed base from Grégory Louis analogue to IP systems. With Anaveo’s recent product launches Fabrice Tisseur comes the potential to sell into the larger, adjacent €2bn access Bridgepoint control market. representatives Anaveo’s market is highly fragmented with over 40% of the Bertrand Demesse segment comprised of smaller independent players providing Olivier Nemsguern
the opportunity to accelerate growth via add-on acquisitions. In Website addition, expansion into new end-markets and the upselling of www.anaveo.com new product technologies in access control and anti-intrusion systems are also planned. This investment was made by BDC, the Bridgepoint fund that invests in small and mid-cap companies.
“Anaveo’s differentiated expertise, product reliability and ease of use have enabled it to outperform the market.”
Olivier Nemsguern partner, Bridgepoint Development Capital New investments New investments
Appleby Fiduciary & Administration
Appleby Fiduciary & Administration (‘AFB’) provides Trust & Corporate Services to a wide range of clients in nine jurisdictions N ot disclosed around the world. Clients range from large global corporations Transaction size from all sectors, to high net worth individuals, families and fund managers, including private equity, hedge funds, real estate and other alternative fund structures. $84.6m AFB has three key business lines administering over 10,000 Revenue structures for almost 6,000 clients: Corporate Administration which provides incorporation and domiciliation services, Trust Administration which establishes trust structures and then provides 350 day-to-day administration services, and Fund Services, which assists Employees in the launch, incorporation and administration of funds. The company operates in a market benefitting from long-term Sector structural drivers such as increased regulation, outsourcing and Financial Services globalisation, all of which lead to underlying annual market growth Location of 7% globally. United Kingdom In addition, it is a fragmented market with a large range of 12 Directors 13 small, sub-scale players. There is therefore a clear opportunity for Farah Ballands AFB to acquire competitors of various sizes, ranging from individual Scott Carter books of business to larger transformational, multi-jurisdiction Roger Siddle
or multiservice line businesses. Over time this will allow AFB to Bridgepoint consider diversifying by product and geography. representatives William Paul Emma Watford
Website www.applebyglobal.com
“Appleby brings significant opportunity to accelerate its growth organically and via acquisition in what remains a strongly growing market.”
William Paul partner, Head of Financial Services sector New investments New investments
Balt
Balt is a leading French medtech business in the fast-growing neurovascular market. N ot disclosed Founded in 1977, it specialises in the design, manufacture Transaction size and distribution of neurovascular devices and products that treat complex, life-threatening conditions of the brain, specifically strokes, aneurysms and arteriovenous malformations (AVMs). €40m The company employs 90 people at its facilities in Montmorency Revenue (France) and Gland (Switzerland). The business focuses on so-called interventional neuroendovascular radiology (or INR) therapy, involving minimally 90 invasive techniques, as opposed to traditional ‘open’ surgery, Employees to correct and stabilise these damaging conditions. Successful intervention using INR techniques leads to substantially improved Sector post-operative outcomes when compared to traditional surgeries Healthcare and significant reductions in the levels of costly after-care required. Location INR devices include access and support (catheters, guidewires), France embolisation (coils, stents, embolic liquid) and thrombectomy 14 Directors 15 devices (stent retrievers). Hervé Novelli Balt serves French hospitals directly and has an international Nicolas Plowiecki network of over 100 distributors covering Europe and beyond. Marina Plowiecki Volumes of INR devices, currently estimated to be worth Stéphane Regnault €1bn, are expected to grow at double digit rates as the number of Oern Stuge patients diagnosed with and treated for neurovascular problems Bridgepoint using INR techniques grows, on the back of an ageing population representatives and increased rates of obesity. Vincent-Gaël Baudet Frédéric Pescatori
Website www.balt.fr
“Balt will be able to accelerate its growth, add further production capacity, enlarge its distribution network and attract new customers, while maintaining its innovative edge.”
Vincent-Gaël Baudet partner, Paris New investments New investments
The Dining Club Group
The Dining Club Group is the UK’s largest discount diners’ club with over four million members. It works with some of the N ot disclosed country’s most popular restaurant chains, as well as over 6,000 Transaction size independent restaurants. It operates two branded membership cards, tastecard and the Gourmet Society, and offers a compelling proposition for £17.5m consumers thanks to the size of its restaurant network and level Revenue and consistency of discount. The company sells memberships through three channels: direct to consumers, to consumers via company employee benefit schemes, and to corporates who 102 offer their customers memberships as part of a bundled offering, Employees such as a premium bank account. Over the year a Dining Club member is able to make Sector considerable savings on eating out, with only two to three uses of Consumer the card typically paying back the initial outlay for membership. Location In parallel, participating restaurants gain profitable incremental United Kingdom footfall. Total UK consumer spend on eating out was £78 billion 16 Directors 17 in 2014. Regular diners eat out on average 34 times a year; Annette Court discount card members by contrast eat out 45 times a year. Dave Cuckney With discounted dining now an established feature of the Ben Eaton growing eating out market, the sector is now being increasingly Sam Shaw driven by the technology needs of the consumer. The company Matt Turner will therefore extend its technological capabilities and broaden Bridgepoint its geographical coverage to consolidate its already significant representatives share of the UK discount dining club market. Matt Legg Alan Payne This investment was made by BDC, the Bridgepoint fund Kevin Reynolds that invests in small and mid-cap companies. Websites www.tastecard.co.uk www.gourmetsociety.co.uk
“With our support we are confident that the Group will grow its member and restaurant numbers, broaden its geographic coverage and extend its technological capability.”
Alan Payne partner, Bridgepoint Development Capital New investments New investments
Element Materials Technology
Element Materials Technology is a global leader in materials and product qualification testing for the aerospace, oil & gas and N ot disclosed transportation markets – all of which require technical testing Transaction size services with mission-critical applications. The company began life as the in-house laboratories testing business of a European aerospace and defence business but today $291m it has 53 laboratories in Europe, the US and China, over 1,800 Revenue employees and 10,000 customers worldwide. It focuses on two core activities: Materials Testing, which involves the testing in one of its certified laboratories of a material, product or welded joint, 1,800 often placing it under extreme pressure and heat; and Production Employees Qualification Testing, which is typically carried out before a product or component goes into production so that it can be Sector certified and pass the appropriate quality assurance tests. Business Services The Testing, Inspection and Certification market is growing Location strongly on the back of increasing regulatory and complexity United Kingdom requirements. In addition, long-term outsourcing trends and the 18 Directors 19 consolidation of suppliers (as the OEMs increasingly demand Charles Noall consistent standards and ‘one stop shop’ testing providers Jo Wetz across fragmented supply chains), will provide opportunities Bridgepoint for Element to grow. representatives The testing market globally remains fragmented, particularly Chris Busby in aerospace where Element already leads the market. There is Raoul Hughes
therefore significant potential to accelerate Element’s growth Website through further market consolidation. www.element.com
“As a platform investment in a sector with significant consolidation potential, this is an opportunity for Element to continue to grow strongly.”
Chris Busby partner, Head of investment in the UK New investments New investments
MVF
MVF is a technology-enabled provider of international online lead generation services to a variety of industry sectors including N ot disclosed various B2B markets, market research, relocations, education, Transaction size clean tech and healthcare. It specialises in online customer acquisition and lead generation using proprietary technology, data-driven analytics £36m and in-house digital marketing expertise to provide some of Revenue the world’s leading brands with high volumes of potential new customers that generate a strong return on investment. The global growth in digital advertising spend, and the 310 complexity challenges created by trends such as the rapid Employees growth of mobile advertising, social media and digital marketing channels, is driving a strong demand for outsourced online Sector lead generation to digital specialists like MVF. Although lead Media & Technology generation currently accounts for less than 5% of the digital Location advertising market, it is growing at 20% pa. United Kingdom MVF is growing rapidly based on strong points of difference 20 Directors 21 including deep in-house online digital marketing expertise, Jules Hopkinson efficient proprietary technology and a scale advantage over Tom Morgan competitors that allows it to deliver a high volume of international Peter Rigby sales-ready leads to its customers with strong ROI transparency. Titus Sharpe This investment was made by BDC, the Bridgepoint fund Michael Teixeira that invests in small and mid-cap companies. Bridgepoint representatives Michael Black Robin Lawson
Website www.mvfglobal.com
“Growth will continue to accelerate as the business deepens its presence in existing industry sectors, adds new ones and expands internationally.”
Robin Lawson director, Bridgepoint Development Capital New investments New investments
Nordic Cinema Group
Headquartered in Stockholm, the Nordic Cinema Group (‘NCG’) is the leading cinema operator in the Nordic region with 70 SE K4.7bn cinemas, 472 screens and a 44% share of total Nordic box office Transaction size revenues. It was formed in 2013 through the merger of SF Bio and Finnkino, although its presence in the region has been built up over many decades through greenfield investments and SE K2.9bn consolidation in larger cities. Revenue NCG’s cinema estate consists of well-invested modern and comfortable cinemas with the latest technology. Sites are typically focused around large and mid-sized cities, and are often 1,500 in high-footfall locations such as shopping malls, transport hubs Employees or cultural centres. With over 23m admissions per annum NCG has c.10m individual customers visiting its sites across the region each year, equating to almost 30% of the total population. Sector With a strong focus on innovation, NCG cinemas feature Consumer premium seating and VIP screening rooms, as well as the first Location Sweden 22 IMAX screen in Sweden, opened in Stockholm in 2015, with a 23 second planned in Oslo in 2017. Directors Although NCG is the clear market leader with a well- Anders Ehrling invested estate in prime urban locations, it also has room to Erik Haegerstrand Torsten Larsson expand organically in its core markets. Further scope exists to Simon Wright accelerate growth through smaller bolt-on acquisitions, in the region and in adjacent geographies. Bridgepoint representatives As evidenced by growing admission trends over recent Christopher Bley years, cinema as an affordable out-of-home experience Mika Herold remains robust despite potentially disruptive technological Mikael Lövgren
developments. It also represents an increasingly important and Website profitable part of the movie industry, notwithstanding these new www.nordiccinema forms of content delivery. group.com
“There is scope to further enrich the whole cinema experience and for NCG to accelerate its growth.”
Mikael Lövgren chairman of Bridgepoint in the Nordic region Managing Partner’s overview Managing Partner’s overview
People Strategy and talent A message from our 14 new team members on track joined us in 2015, adding to our Managing Partner 2015 was a year where we strengths and depth. successfully sought new opportunities in growth companies across Europe. Operating highlights By the end of 2015, Bridgepoint I am pleased to report that Bridgepoint Europe V, the €4 billion middle market enjoyed a strong year in 2015 with our buyout fund that we finished raising two businesses, Bridgepoint Europe earlier in the year, had made its fifth and Bridgepoint Development Capital, investment and its new investments were achieving excellent results thanks to the already pursuing accelerated growth performance of the companies owned by through add-on acquisitions in line with Bridgepoint funds and our own team’s the Fund’s original strategy. skill in investing, managing businesses Bridgepoint Development Capital and selling well. II, our €350 million lower mid-market Over the last 12 months we have buyout and growth capital fund, has carefully sought out interesting new now committed a large part of its 24 investment opportunities in growth primary capital, with 11 transactions in 25 companies across Europe. During the the portfolio at the end of the year. As a year we invested €950 million in seven result, we expect to return to investors companies with a total enterprise value in 2016 to raise a larger successor fund of €2.4 billion. In addition, Bridgepoint– to continue to build this practice, which owned businesses completed 42 add- has flourished under the leadership of on acquisitions in the year, pursuing Michael Black and his colleagues. consolidation strategies to build scale and improve their competitive position. Facing into Importantly we matched this new “Over the last 12 months we investment activity with strong exit the future have carefully sought out results returning some €1.8 billion to Volatility will create interesting new investment our investors in 2015, a number that opportunity and we will Portfolio opportunities in growth continue to exploit our exceeded our initial expectations for position in Europe’s momentum companies across Europe. middle market. the year by some measure. During the year we Resilience and an ability to drive long-term value invested €950 million in creation characterised seven companies with a much of the work of total enterprise value of our portfolio. €2.4 billion.”
Bridgepoint Annual Review 2015 Bridgepoint Annual Review 2015 Managing Partner’s overview Managing Partner’s overview
Europe and the environment It also meant that Portfolio momentum In this environment revenue A continued high level of for investing Bridgepoint’s broad investment Bridgepoint funds’ investments development initiatives featured add-on acquisition activity is also The contrast between improving and operational resources across collectively generated 9% heavily in the Bridgepoint portfolio, helping value creation. In 2015 economic fundamentals in Europe were deployed with a and 14% year-on-year average examples of which include this ranged from LGC’s £90m Europe and periodic outbreaks particular focus on investing in revenue and EBITDA growth. expansion of LGC into China and US acquisition (just prior to its of macro volatility resulted in an businesses with a combination This is a real demonstration the US, new school construction subsequent sale at the end of uneven year for the investment of characteristics: sustainable of our portfolio companies’ at CEG, new classes of vehicle 2015) to smaller in-fill acquisitions outlook in 2015. The slowing rate end-market growth, disciplined continuing resilience and ability tests for TüvTurk in Turkey, R&D completed at CEG, Moneycorp, of economic growth in China investment at attractive to drive long-term value creation programmes at AHT and eFront, Foncia, Oasis and Azzurri. contributed to weaker European valuations, value creation in what in Europe remains and Solhaga’s expansion outside equity market sentiment. This opportunities via market a relatively low-growth and of Sweden into the Norwegian was offset by better than forecast consolidation and operational frequently volatile environment. market. All are aimed at driving underlying progress in European expertise. These are all reflected sales growth. “Buying well required high quality economies boosted by the in the new investments made by benefit of a lower Euro helping both BDC and BE in the year. origination, absolute clarity of the region’s many exporters and investment case, transaction selectivity falling oil prices continuing to and a focus on relative value.” act as an economic stimulus, putting money back into the pockets of consumers. During 2015 acquisition Portfolio performance pricing remained high in Europe, driven by favourable Fabrice Turcq debt markets and a recognition Investment Director, Paris 26 Revenue growth 27 from international investors that Europe represented a good cycle play, especially on a currency- adjusted basis. This remained % % % both a blessing and a challenge, 11 12 9 depending on whether you were buying or selling. As a result, buying well, which is always our number one focus, required high quality origination, absolute 2013 2014 2015 clarity of investment case, transaction selectivity and a focus on relative value based EBITDA growth on looking at sector by sector valuations over the long term. 13% 11% 14%
2013 2014 2015
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Patrick Fox “In 2015 Bridgepoint Partner, Operational Support Group investments returned over €1.8 billion of capital to investors with seven major exits.”
Marc Zügel Chris Busby Partner, Head of investment in Germany Partner, Head of investment in the UK
Returning capital to investors leveraged loans market to arrange In 2015 Bridgepoint investments debt totalling €3.4 billion, allowing returned over €1.8 billion of us to balance better borrower- capital to investors with seven friendly terms with the need for major exits, including the sales of prudent leverage in the growth Ponant, the specialist luxury cruise companies that characterise operator and market leader in Bridgepoint’s middle market specialist polar cruises, to Artémis, activities. It also meant that our the holding company of French investments continue to enjoy entrepreneur Francois Pinault, meaningful liquidity, headroom Infront Sports & Media to Dalian and flexibility as they grow. Wanda Group, one of China’s Finally, at the end of 2015, 28 leading conglomerates; and LGC, we also transferred interests in a 29 the international life sciences number of the residual assets in a company, to KKR, and Quotient mature fund, Bridgepoint Europe Clinical, the early-stage drug III, to a global institutional development services provider, investor. The transaction will to GHO Capital. provide over €300 million of Our Capital Markets team liquidity to the Fund when it also took advantage of buoyant completes in early 2016. conditions in the European
Capital returned
2015 €1.8bn 2014 €2.0bn 2013 €1.2bn 2012 €892m
Bridgepoint Annual Review 2015 Bridgepoint Annual Review 2015 Managing Partner’s overview Managing Partner’s overview
People and talent It’s heartening in these times to “I want to pay tribute to a During the year Bridgepoint see the spirit of cooperation and group of colleagues who welcomed 14 new team members kindness that people display. in 2015 independently across Europe, including a new Everyone at Bridgepoint was partner to our Paris office, Denis especially proud that people they undertook to fundraise Villafranca, and another in Madrid, work with every day undertook for Myeloma UK, a Héctor Pérez. The strength and such a difficult challenge for a cancer charity, in depth of our team has always been such a worthy cause. memory of a colleague, a distinguishing characteristic 2016: looking ahead Jan Hester, who sadly of Bridgepoint as a business. As we enter 2016 the volatility that passed away at a young Guy Weldon Frédéric Pescatori Yet we have always recognised that characterised 2015 will continue Partner and Chief Investment Officer Partner, Head of investment in France new individuals bring different age in 2014.” for some time to come. Perhaps important perspectives, especially paradoxically, volatility has already at the beginning of the investment created interesting investment of a new fund. Our ability to opportunities albeit that a targeted continue to develop the talent approach to investment has to be of our own longstanding team maintained. members as well as attract new That is why the priorities ones therefore remains critical to for our Firm in 2016 are very our success. If we are to continue to clear. First, we will continue to be improve, we must evolve. disciplined in our pricing and make On a more personal note, investments borne of intelligent I want to pay tribute to a group judgement. This not only means of colleagues who in 2015 30 exploiting our attractive position 31 independently undertook to in Europe’s middle market but also fundraise for Myeloma UK, a cancer buying well with proper regard to charity, in memory of a colleague, risk and reward. It also extends Jan Hester, who sadly passed away to working to create value in our in 2014. A team of 17 colleagues set investments by focusing on revenue out to climb the three largest peaks growth, operational improvement in the UK in 24 hours which they and accretive add-on acquisitions. achieved in time. They raised over Second, we aim to continue £31,000 which the Bridgepoint to return meaningful amounts of Charitable Trust then matched.
“Our ability to continue to develop the talent of our own longstanding team members as well as attract new ones Charlotte Kitabgi Senior Associate, Paris therefore remains critical to our success.”
Bridgepoint Annual Review 2015 Bridgepoint Annual Review 2015 Managing Partner’s overview Managing Partner’s overview
James Reynolds capital to our investors. Through and commitment that lies behind Investment Director, London our sector-based approach Bridgepoint’s results. Behind the implemented locally across a achievements I have summarised pan-European platform, our funds here are a very dedicated group of have consistently generated strong people – the management teams capital returns to our investors and over 90,000 employees of the throughout different economic companies we back. I thank them cycles. Our aim therefore in 2016 for their contribution, dedication is to continue this trend, with and hard work in 2015. strong realisations as we take The ambition of our own advantage of favourable markets Bridgepoint colleagues across for selling assets. Europe and in China has also been And third, as our lower undiminished and I thank them too middle market business for their energy and commitment. Bridgepoint Development Capital Finally, it’s encouraging to moves towards making its last conclude this review by noting investment from its BDC II fund, that in productive partnership as noted, we expect it to return with our management teams and to the market in 2016 to raise a the people working in Bridgepoint larger successor fund for what companies, we start 2016 excited remains a very attractive and active by the opportunities presented by part of the private equity market the times and well positioned for in Europe. the future. 32 I, and my fellow partners, are 33 aware of the huge amount of work
“In productive partnership with our management teams and the people working in Bridgepoint companies, we start 2016 excited by the opportunities presented by the times and well positioned for the future.”
William Jackson Managing Partner
Bridgepoint Annual Review 2015 Bridgepoint Annual Review 2015 Investment and sector expertise Investment and sector expertise
Investment and sector expertise
Our aim is to invest in high-performing, ensure proper understanding of the space Investment preferences well-managed businesses that have the as well as to identify new and add-on We are attracted by opportunities in sectors and portfolio businesses made 42 add-on acquisitions. niches with strong underlying growth, typically Our investment teams are able to call upon potential to grow through expansion, investments. ahead of the broader economy, segments where expertise from a range of specialists whose skills operational transformation or via By exploiting this wealth of local Europe has global competitive advantage or in include operational expertise, debt finance acquisition. knowledge and sector expertise in businesses with high visibility of earnings and structuring and procurement. In addition, We focus on six core sectors: Business Europe, we are also able to identify and contracted income. Bridgepoint has a portfolio development office We are especially known for helping to create in Shanghai which accelerates the development Services, Consumer, Financial Services, acquire businesses where significant value value through market consolidation – by identifying of portfolio companies in China across areas such Healthcare, Manufacturing & Industrials can be created under our ownership and and arranging funding for add-on acquisitions by as market entry, procurement, establishing and Media & Technology. Each sector where in turn businesses can exploit the platform businesses owned by Bridgepoint facilities, add-on acquisitions and joint ventures team is organised on a pan-European our reach and know-how to enhance funds – or securing operational improvement to with local partners. drive earnings growth. In 2015 Bridgepoint basis, with teams working closely together their operational performance, growth across offices to build knowledge and prospects and market position.
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27% 25% 7% 17% 9% 15% Business Services Consumer Financial Services Healthcare Manufacturing Media & & Industrials Technology
Bridgepoint Annual Review 2015 Bridgepoint Annual Review 2015 sector expertise: business services sector expertise: business services Business Services Business services, by its nature, is a wide-ranging sector covering everything from professional services to asset rental with much in between. Within % this space, our focus is quite specific: we seek out businesses with a clear 27 USP, either in the form of distinctive expertise or proprietary technology
that would be hard for a competitor to replicate. It’s often a sector where of our portfolio is high quality managers can be found who can bring impact quickly on the currently invested in this sector performance of a business.
As with all our other sector specialisms, our interest in this area comes primarily Emma Watford from its potential for growth. The importance of business services reflects the Head of Business Services sector tendency for successful businesses to focus on their core activity, effectively asking themselves, “Which non-essential parts of our operation could another company do cheaper, faster or better than we can?” The result is the emergence of a group of specialist service companies whose offer goes far beyond simple activities like specialist expertise to serve customers in a and strong market positions typically can make a 36 cleaning or catering. So, for example, in the pensions sector greater range of territories. decisive difference. 37 a service company could take care of skilled but non-core As with any sector, predicting precisely Our relative focus within these sub-sectors activity like loss adjustment. where growth will occur can be challenging. flexes to take account of prevailing trends. When selecting candidate companies for potential Nevertheless we believe key opportunities for Beyond these areas we are also interested in investment, we look for high-quality businesses with growth include technology and IP enablement, opportunities that overlap other Bridgepoint a clearly differentiated position and significant potential businesses with exposure to emerging markets investment areas such as media and technology, for value creation. We are particularly interested (where growth can create a skills gap and the healthcare and financial services. in opportunities for market consolidation business services industry can be less developed) Putting all of this together gives us clear (typically through a process of buy and and services to businesses that maximise the parameters within which to appraise opportunities, build), businesses servicing high-growth potential of scarce resources. taking into account prevailing economic conditions, end user segments, businesses with a We categorise our sweet spots for investment and the likelihood of future growth prospects. The high proportion of recurring revenues into two discrete subsectors: professional services, result enables us to see beyond the short term and (often in the form of ongoing and asset and facility services. take a longer-term, more effective view. contracts rather than one-off Within professional services, we focus on fees) and businesses where outsourcing and consulting (particularly tech- technology plays a role in creating enablement and building ‘sticky’ relationships competitive advantage. in order to retain revenue), education and Another important part of a business’s training, and testing, inspection and certification. appeal is global potential and the ability All three are typically high margin, high expertise to serve an international client base. Here businesses. €1.7bn Bridgepoint can use its network to help Within asset and facility services, we focus on Invested in 15 companies in the businesses to diversify their geographic property services, energy and industrial services European Business Services presence, enabling them to deploy their and transport services, where good management sector in the last 10 years
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Anaveo is a provider of electronic security solutions such as video Date acquired Location Cambridge Education Group (CEG) is one of the largest international Date acquired Location surveillance, security access control and intrusion detection to 2015 France schools groups in Europe, providing pre-university education to more 2013 United Kingdom small and medium sized businesses. It has a network of 11 agencies Directors than 3,500 students in the UK originating from 80 countries. Directors and 270 employees across France and in 2011 opened a subsidiary Employees Grégory Louis CEG operates four divisions in three countries: ‘CATS’ a Junior Employees Fergus Brownlee in China to set up a direct sourcing strategy and establish a Fabrice Tisseur and Senior High School network with campuses in Cambridge, Hetal Shah commercial presence there. 270 1,053 Bridgepoint Canterbury, London, and Boston in the US; ‘Foundation Campus’ Sir John Sunderland This investment is managed by Bridgepoint Development Capital. Original deal size representatives programmes through partnerships with 20 universities in the UK, Transaction size Bridgepoint Not disclosed Bertrand Demesse US and the Netherlands; the College of Visual & Performing Arts in £185m representatives Olivier Nemsguern Cambridge; and English as Foreign Language (EFL) schools in the UK Chris Bell and US, operating under the ‘Stafford House’ brand. Revenue Website Revenue Chris Busby €43.7m www.anaveo.com £110m Website www.cambridge educationgroup.com
A-Katsastus is the leading vehicle inspection company in Northern Date acquired Location Europe with 273 stations in Finland, Sweden, Poland, Estonia and 2006 Finland Latvia. Its services include compulsory vehicle inspections, drivers’ Directors examinations and vehicle insurance and registration services. Employees Kari Kivikoski In 2015, the group continued its network expansion in Sweden and Ilkka Rantasalo focused on developing new complementary business areas in Finland. 1,160 Terhi Vähähyyppä Transaction size Bridgepoint Not disclosed representatives Michael Davy 38 Revenue Patrick Fox 39 €111m Mika Herold Website www.a-katsastus.com
Beck & Pollitzer is a leading engineering services business Date acquired Location specialising in the installation/relocation of industrial plant/ 2007 United Kingdom machinery and associated services. Directors The company has a blue chip client base across a wide range Employees Andrew Hodgson of sectors including automotive, canning, pharmaceutical and Janusz Lach aerospace and, is growing on the back of strong end markets and 700 Charles Matthews an increasing propensity for customers to outsource these services, Transaction size Romain Provoust providing an opportunity for Beck & Pollitzer to expand both £55m Fraser Ruciman geographically and across new sectors and services. Bridgepoint This investment is managed by Bridgepoint Development Capital. Revenue representatives Stephen Bonnard £72m Mark Stroud Website www.beck-pollitzer.com
Bridgepoint Annual Review 2015 Bridgepoint Annual Review 2015 investments in the business services sector investments in the business services sector
CTL Logistics is Poland’s largest private rail logistics company, and, Date acquired Location Foncia is the market leader in residential property management Date acquired Location one of the leading private rail operators in Europe with operations 2008 Poland services in France, Belgium and Switzerland with additional 2011 France across Poland and the neighbouring countries. It provides tailor- Directors operations in Germany. Directors made logistics solutions focusing on rail transportation, freight Employees Jacek Bieczek It manages apartment buildings on behalf of all residents collectively Employees Benoît Fournial forwarding, siding management and waste management for a wide Mariola Hola-Chwastek and provides a lettings management service to owners of individual Marc Frappier range of sectors from coal and coke, fuels and oil, to agricultural and 1,643 Michał Jóźwiak apartments. It also provides ancillary services including valuations 7,700 Bruno Keller consumer industries. It operates in some of the largest markets in Transaction size Jaroslaw Krol and insurance/energy broking and real estate transaction services. Transaction size Anne Lalou Europe, including the strategically important East-West rail corridor. Not disclosed Bridgepoint Not disclosed Jacques Lenormand representatives Wilfried Piskula Revenue Khai Tan Revenue Bridgepoint €162m Maciej Zuzałek €695m representatives Website Benoît Bassi www.ctl.pl Vincent-Gaël Baudet Frédéric Pescatori Website www.fonica.fr
Element Materials Technology is a global leader in materials and Date acquired Location Inspired Thinking Group (ITG) is a technology-led marketing Date acquired Location product qualification testing for the aerospace, oil & gas and 2016 United Kingdom services business which serves the growing trend of decoupling 2014 United Kingdom transportation markets. Directors the ‘creative’ from the ‘execution’ phase in marketing services Directors Acquired in 2015 it has it has 53 laboratories in Europe, the US and Employees Charles Noall and outsourcing the latter. Employees Mark Lovett China, over 1,800 employees and 10,000 customers worldwide. 1,800 Jo Wetz In 2015 it won contracts with brands such as Cath Kidston and 350 Stevie Spring Bridgepoint Bourne Leisure and deepened existing relationships with notable Simon Ward Transaction size representatives clients such as M&S and Sainsbury’s. It further developed its in- Transaction size Bridgepoint Not disclosed Chris Busby house digital offering (ITG 360), and grew its presence in the USA, £28m representative Raoul Hughes winning a large contract with Claire’s in the territory Adrian Willetts 40 Revenue Website This investment is managed by Bridgepoint Development Capital. Revenue Website 41 $291m www.element.com £68m www.inspiredthinking group.com
Bridgepoint Annual Review 2015 Bridgepoint Annual Review 2015 investments in the business services sector investments in the business services sector
KGH is the leading independent customs services provider in Europe Date acquired Location TüvTurk is the monopoly provider of statutory vehicle inspections Date acquired Location with operations in 11 countries and over 14,000 customers. 2013 Sweden operating 208 stations across Turkey. The company has a 20 year 2009 Turkey In 2015, KGH won several important contracts with multinational Directors monopoly concession until 2027 and has franchised its operations Directors clients on a pan-European basis, where the Company provides strong Employees Vidar Gundersen in 81 regions to 48 franchisees. Employees Husnu Akhan differentiation versus local competition. The company also continued Michael Olsson TüvTurk has received approval from the Ministry of Transport for Matthias Rapp to invest to build the next generation’s software platform, which is 700 Magnus Sjöqvist the online sale of mandatory vehicle insurance (‘MVI’), commencing 871 Klemens Schmiederer now being piloted and will be launched commercially in 2016. Transaction size Bridgepoint in 2016 which will add significant value add to the business. Transaction size Erman Yerdelen This investment is managed by Bridgepoint Development Capital. Not disclosed representatives TRY347m Bridgepoint Johan Dahlfors representatives Revenue Johan Gustafsson Revenue Martin Dunn SEK 581m Website TRY120m Patrick Fox www.kghcustoms.com Website www.tuvturk.com.tr
Leeds Bradford Airport (LBA) serves Yorkshire & Humberside, a Date acquired Location region of 5.3 million inhabitants. 2007 United Kingdom Since Bridgepoint’s acquisition LBA has consistently been one of Directors the fastest growing airports in the UK. Following an £11m terminal Employees Paul French upgrade in 2012, LBA has introduced a range of new routes and Tony Hallwood airlines including British Airways, Monarch and Thomson. 200 John Parkin Transaction size Simon Whitby £145m Bridgepoint representatives 42 Revenue Michael Davy 43 £28.4m Patrick Fox Website www.leedsbradford airport.co.uk
LOC Group is an international provider of marine and engineering Date acquired Location assurance services to the offshore oil & gas and shipping markets. 2013 United Kingdom It is a leading provider of marine warranty surveys required for Directors the transport and installation of offshore capital equipment, and Employees David Ballands the market leader in marine casualty consultancy for shipping Robin Bidwell insurers in high-profile incident and dispute cases. 400 Nadim Butt Established in 1979, it operates from over 30 offices located Transaction size Edward Guest around the globe and employs 400 staff including master Not disclosed Andrew Squire mariners, naval architects, and marine and structural engineers. Bridgepoint This investment is managed by Bridgepoint Development Capital. Revenue representatives Mayank Kanga £65m Kevin Reynolds Website www.loc-group.com
Bridgepoint Annual Review 2015 Bridgepoint Annual Review 2015 sector expertise: consumer sector expertise: consumer Consumer Defining what we mean by ‘Consumer’ is somewhat easier than for some other sectors as everyone has an intuitive idea of what it entails, reflecting % the size and importance of the sector and the fact that consumer spending 25 remains one of the main drivers of the European economy. It is also important
in private equity investment terms, accounting for c.25% of all private equity of our portfolio is transactions in Europe. currently invested in this sector
We segment consumer into four primary subsectors where our knowledge and experience can make a decisive difference: retail, leisure, FMCG and consumer Jason McGibbon services. We look for companies with clear opportunities for growth, strong brand Head of Consumer sector equity, scope for brand innovation and a firm commitment to service culture. A well-defined CSR programme is also increasingly important, particularly amongst younger consumers. Finally, we seek out companies with the scope for business model improvement, where Bridgepoint in particular can add value. The more of these characteristics a prospective investment has, the more attractive it becomes. of convenience or efficiency). resonate with consumers and of course other If those are the characteristics we look for in potential investment 44 Identifying promising growth areas by management teams. Our deep track record helps 45 opportunities, where do we think growth will occur in the consumer sector? theme or driver contrasts with the more usual us better understand new opportunities and The answer can be found in our approach to this sector: instead of analysing sub-segment approach that lacks the flexibility underpins our thematic approach to identifying the space by the specific area of consumer activity (e.g. speciality retail or to accommodate outlier or challenger brands. opportunities for growth. Since it was established, cinemas), we prefer to identify Concentrating on deeper dynamics like this Bridgepoint has invested €3.6bn in over 100 promising growth areas by theme enables us to look closer and see further to identify consumer businesses – a long association that or driver. This has the flexibility the most promising opportunities in the consumer enables us to look beyond the cyclical nature of to accommodate advanced space and the qualities of each opportunity that the sector and take a longer, more informed view. business models that do not fit will deliver significant growth. into standard categories. Equally important when evaluating an The key drivers we look for opportunity is recognising the importance to include demographics (for consumers of local knowledge. In some areas the example any opportunity that UK or France will have evolved in slightly different taps into population changes but important ways compared to Turkey or Poland and trends), value versus luxury – and vice versa. Having a pan-European team and (particularly relevant in the retail significant consumer input from our Shanghai subsector), and experiential (for team helps us appreciate the distinctions and example occasions or experiences needs of different markets. that offer consumers something We have been investing in consumer special). Equally important are businesses for over 30 years, with high-profile the themes of self-improvement (for €1.9bn transactions like Pets at Home, Alain Afflelou, example health, wellness or education- Invested in 14 companies Nordic Cinema Group and Pret A Manger that related) and consumer service (typically in terms in Consumer sector in the last 10 years
Bridgepoint Annual Review 2015 Bridgepoint Annual Review 2015 investments in the consumer sector investments in the consumer sector
Azzurri is a leading Italian-themed casual dining group in the UK, Date acquired Location Fat Face is a UK retailer of modern, casual clothes with an ‘outdoor Date acquired Location operating 250 restaurants under two well-established casual dining 2015 United Kingdom lifestyle’ theme, operating a multi-channel model of over 200 2007 United Kingdom brands, ASK Italian and Zizzi, as well as Coco di Mama, a fast-growing Directors directly owned stores with a rapidly growing e-commerce business Directors Italian-themed quick service food and coffee concept. ASK Italian and Employees Steve Holmes and an active wholesale operation. A total of 90 stores have been Employees Will Crumbie Zizzi focus on authentic Italian cuisine with differentiated menu styles Jim Pickworth added under Bridgepoint’s ownership. Simon Greene and both brands have a long-standing reputation for quality and value 5,700 Kieran Pitcher 2,730 Simon Pickering for money. Transaction size Harvey Smyth Transaction size Stuart Rose In 2015 Azzurri continued to grow its footprint with new restaurant Bridgepoint £360m Mark Seagar openings across both ASK Italian and Zizzi brands and the acquisition £250m representatives Anthony Thompson of Coco di Mama, a London-based quick-service food brand, serving Revenue Michael Black Revenue Bridgepoint all-day Italian cuisine, with an expertise in pasta and coffee. £218m Jason McGibbon £205m representatives Website Benoît Alteirac www.askitalian.co.uk Guy Weldon www.zizzi.co.uk Website www.cocodimama.co.uk www.fatface.com
Casino France Operations (CFO) (formerly a sister company of the JOA Date acquired Location Groupe) is an independent player in the French gaming sector that 2005 France operates two casinos under a franchise agreement with JOA Groupe. Directors Following the restructuring of JOA acquired in 2005, Bridgepoint and Employees Claude Poisson Loto Quebec retained full control and ownership of CFO. 158 Alain de Pouzihac CFO’s first permanent casino began operations at the beginning of Bridgepoint December 2014, with a second one, in a temporary site in 2015. The Transaction size representative permanent location was opened at the beginning of January 2016. Not disclosed Benoît Bassi Website 46 Revenue www.joa-casino.com 47 €10m
Dr Gerard is one of the largest producers of branded and co- Date acquired Location branded label biscuits in Poland, selling leading brands and high- 2013 Poland quality products through all retail distribution channels. Directors Established in 1993, the company operates from three sites across Employees Jerzy Glinka Poland where it employs over 1,000 people. It has transformed 1,032 Jarosław Zawadzki itself from a local single-channel producer into a multi-channel Bridgepoint operation with increasing CEE and international presence. Transaction size representatives In 2015, Dr Gerard continued to build its geographical footprint by Not disclosed Jason McGibbon expanding into Romania with another two subsidiaries opening Khai Tan at the beginning of 2016 in Hungary and the Czech Republic. The Revenue Maciej Zużałek recent acquisition of Artur, the Polish biscuit producer, has also €86m Website further strengthened its position in the marketplace. www.drgerard.eu
Bridgepoint Annual Review 2015 Bridgepoint Annual Review 2015 investments in the consumer sector investments in the consumer sector
Histoire d’Or (part of Group Thom) is the largest jewellery retailer in Date acquired Location The Nordic Cinema Group (‘NCG’) is the leading cinema operator in Date acquired Location France. It was acquired simultaneously with the market No. 2, Marc 2010 France the Nordic region with 70 cinemas, 472 screens and a 44% share of 2015 Sweden Orian, and both were merged securing significant synergies. Directors total Nordic box office revenues. NCG’s cinemas are well-invested, Directors The majority of the Marc Orian estate was converted to the Employees Loïc Armand modern and comfortable with the latest technology. Sites are Employees Anders Ehrling Histoire d’Or format. Today the combined group operates over 580 Eric Belmonte typically focused around large and mid-sized cities, located in Erik Haegerstrand stores under three banners (Histoire d’Or, Marc Orian and Trésor) 2,640 Bruno Candelier shopping malls, transport hubs or cultural centres. With over 23m 1,500 Torsten Larsson including a small and expanding network in Belgium and Italy. Transaction size Jordi Constans admissions per annum NCG has c.10m individual customers visiting Transaction size Simon Wright its sites across the region each year, equating to almost 30% of the In 2015, Histoire d’Or continued to expand its network by opening Jacques Pancrazi Bridgepoint €599m Thomas Simon total population. SEK 4.7bn 33 stores. representatives Revenue Maurice Tchenio Revenue Christopher Bley Bridgepoint Mika Herold Le premier bijoutier de France €378m representatives SEK 2.9bn Mikael Lövgren Benoît Bassi Website Frédéric Pescatori www.nordiccinema Website group.com www.histoiredor.com
Hobbycraft is the leading arts, crafts and hobbies specialist retailer Date acquired Location in the UK with 83 superstores. Under Bridgepoint ownership and with 2010 United Kingdom a new management team in place, it has undergone an extensive Directors operational improvement programme to support growth within the Employees Lawrence Christensen existing estate, further store roll-out and multi-channel development. Dominic Jordan The business has recently launched a new, smaller store format. 1,980 Catriona Marshall Transaction size Matthew Moore Archie Norman Not disclosed Katherine Paterson 48 Revenue Katharine Poulter 49 Bridgepoint £151m representatives Emma Watford Guy Weldon Website www.hobbycraft.co.uk
Limoni is the market leader in the Italian perfumery retail sector Date acquired Location with a network of c.400 stores. It also provides a wholesale 2006 Italy service to smaller independent Italian perfumeries. Directors Employees Enrico Ceccato Maurizio De Costanzo 1,516 Paolo Frigati Transaction size Marco Giorgetta Fabio Pampani Not disclosed Roberto Pisa Revenue Bridgepoint representatives €222m Benoît Bassi Raoul Hughes Website www.limoni.com
Bridgepoint Annual Review 2015 Bridgepoint Annual Review 2015 investments in the consumer sector investments in the consumer sector
Pret A Manger is the UK’s leading retailer of high-quality natural, Date acquired Location Rodenstock is a leading manufacturer of both optical lenses and Date acquired Location ready to eat sandwiches, salads and drinks. Founded in 1986, it has 2008 United Kingdom eyewear, the only company worldwide able to offer both products. It 2007 Germany over 390 shops in the UK, US, Hong Kong, France and China and Directors is the No 3 and No 4 respectively in Europe and the world within the Directors employs over 10,000 people. In 2015, Pret’s new franchise model Employees Sinclair Beecham optical lenses market, enjoying strong brand recognition and a high Employees Oliver Kastalio saw the opening of two shops in France located at the Paris Gare Laurence Billett reputation for technology leadership in its field among opticians. Michael Kleer de Lyon and Nice Airport. 10,235 Nick Candler In 2015, Rodenstock continued to drive top and bottom line growth 4,300 Peter Körfer-Schün Transaction size Anders Dahlvig as a result of increasing business with independent opticians and Transaction size Sven Schirmer Clive Schlee optical chains in its core European markets. It also strengthened its Robert Schlitt £364m eyewear business by launching two new licence brands (Bogner Not disclosed Bridgepoint Bridgepoint and Jil Sander) and made significant investments in launching new Revenue representatives Revenue representatives products in its lens portfolio. Vince Gwilliam Christoph Braks £671m William Jackson €417m Ian Dugan Website Website www.pret.com www.rodenstock.com
The Dining Club Group is the UK’s largest discount diners’ club Date acquired Location with over four million members. It works with some of the 2015 United Kingdom country’s most popular restaurant chains, as well as over 6,000 Directors independent restaurants. It operates two branded membership Employees Annette Court cards, tastecard and the Gourmet Society, and sells memberships Dave Cuckney through three channels: direct to consumers, to consumers via 102 Ben Eaton company employee benefit schemes, and to corporates who offer Transaction size Sam Shaw their customers memberships as part of a bundled offering, such Matt Turner as a premium bank account. Not disclosed Bridgepoint 50 This investment is managed by Bridgepoint Development Capital. Revenue representatives 51 Matt Legg £17.5m Alan Payne Kevin Reynolds Website www.tastecard.co.uk www.gourmetsociety.co.uk
Wiggle is the leading global online retailer of cycling and tri sports Date acquired Location equipment. The company has an attractive and loyal customer base 2011 United Kingdom of 1.5 million active consumers and it receives 150,000 orders every Directors week via its 13 primary domains. The business delivers to over 70 Employees Stefan Barden countries worldwide with 50% of its sales being outside the UK. Giles David In 2015 the company consolidated and relocated its distribution 478 Brian McBride facilities to a purpose-built 300k sqft site close to key Transaction size Bridgepoint communications routes in Wolverhampton. Having established £180m representatives market leadership in the UK the business is acting to replicate its Patrick Fox success in other attractive markets, particularly Europe. Revenue Nick Heslop £193m Xavier Robert Website www.wiggle.co.uk
Bridgepoint Annual Review 2015 Bridgepoint Annual Review 2015 sector expertise: financial services sector expertise: financial services Financial Services The financial services sector is broad and in order to make the most of the opportunities it offers, we focus on a number of significant subsectors. % These include: insurance (particularly underwriting, broking and associated 7 services), asset and wealth management (both institutional and retail),
specialty finance and fintech, all within a European context. Financial of our portfolio is institutions themselves, such as retail or commercial banks, are not our currently invested in this sector prime area of focus.
The financial services sector is of course an integral part of Europe’s economic and William Paul social fabric. Successful service providers must therefore take account of emerging Head of Financial Services sector ‘megatrends’ and tailor their services accordingly. For example, access to the web means individuals are increasingly well informed and expect high levels of services, populations across Europe are aging (directly influencing retirement savings planning and pension provision), while a range of new technologies are rapidly changing the way people interact with financial service providers. incentivising key individuals become increasingly investment opportunities where we can help a 52 At Bridgepoint we understand these trends, enabling us important. We work well with business owners, company become market leader, putting them in 53 to take full advantage of the opportunities they management teams and importantly, with turn on the radar for future acquisition. offer. Our size and experience means we can bring regulatory bodies worldwide. In terms of our track record, by focusing on considerable resources to bear, not just in Looking ahead, we expect to see regulation to a handful of high-growth areas we have achieved terms of capital and people but also in be an ever more important driver of opportunity. realised returns in excess of three times and terms of vision and understanding. Increasing regulatory and compliance standards what we have learned is enabling us to pinpoint As to the specific worldwide will drive many industries towards repeatable business models, creating the conditions characteristics we look for in consolidation and polarisation to smaller numbers for continued future success. investment opportunities, of world-leading players. an innovative approach to We also expect to see technology continue to technology is always highly drive growth, from improving internal efficiency attractive. This influences for financial institutions to increasing choice everything from distribution and and service levels for consumers. The result will how a financial product is brought increase competitiveness and create the right to market, to increasing customer conditions for success. satisfaction and stealing a march over On the service side we expect to see growth competitors. coming from increased use of outsourcing and We also look for companies with business process re-engineering designed to experienced, motivated staff. Many improve efficiency and profitability. service businesses are essentially people On the product side, insurance continues to €500m businesses, so the quality of their people be of real interest to us. We also expect initiatives Invested in four companies in is paramount. In a competitive market, that reflect the megatrends described above to the European Financial Services innovative approaches to finding, retaining and do well. Above all we will continue to look for sector in the last 10 years
Bridgepoint Annual Review 2015 Bridgepoint Annual Review 2015 investments in the financial services sector investments in the financial services sector
1st Credit is a UK debt purchasing agency that acquires debt Date acquired Location Moneycorp is a UK headquartered specialist foreign exchange Date acquired Location portfolios from banks, utility suppliers and telecoms companies. 2004 United Kingdom business with operations in the UK, Ireland, France, Spain and the US. 2014 United Kingdom Having raised £120m in 2013, it was able to acquire £31m of debt Directors It operates three main businesses – International Payments, Directors portfolios and in 2014 secure an additional £40m of purchases. Employees Simon Dighton Retail and Wholesale. Employees Colin Buchan In 2015, the company has continued to broaden its debt purchasing Charles Holland International Payments serves small and medium-sized businesses Nick Haslehurst customer base whilst ensuring it remains focused on the tight 174 Bruce McLaren and individuals looking to make international foreign exchange 752 Mark Horgan compliance regulations within its sector base. Transaction size Eddie Nott transfers while the business’ Retail division operates from bureaux de Transaction size Paul Lever Leith Robertson change and ATMs at Gatwick, Stansted, three other UK airports and £212m Bridgepoint £67m Bridgepoint central London locations. The Wholesale division supplies banknotes representatives Revenue representatives to banks and financial institutions worldwide. Revenue Stephen Green £33m Patrick Fox £130m Rob Moores Stephen Green Website Website www.moneycorp.com www.1stcredit.com
Appleby Fiduciary & Administration (‘AFB’) provides Trust & Date acquired Location Corporate Services to a wide range of clients in nine jurisdictions 2015 United Kingdom around the world. Clients range from large global corporations Directors from all sectors, to high net worth individuals, families and fund Employees Farah Ballands managers, including private equity, hedge funds, real estate and Scott Carter other alternative fund structures. 350 Roger Siddle AFB has three key business lines administering over 10,000 Transaction size Bridgepoint structures for almost 6,000 clients: Corporate Administration Not disclosed representatives which provides incorporation and domiciliation services, Trust William Paul 54 Administration which establishes trust structures and then provides Revenue Emma Watford 55 day-to-day administration services, and Fund Services, which assists Website in the launch, incorporation and administration of funds. $84.6m www.applebyglobal.com
Bridgepoint Annual Review 2015 Bridgepoint Annual Review 2015 sector expertise: healthcare sector expertise: healthcare Healthcare Health is a huge market where Bridgepoint focuses on two areas particularly suited to middle market private equity investment – regulated healthcare and social care.
Our interest in this sector is underpinned by a compelling combination of micro and macro growth drivers and the opportunities they present for middle market businesses. At a macro level, ageing populations are driving demand, as is the rise of consumerism 17% in the sector, typically characterised by a growing ‘market’ mentality amongst patients €1.4bn taking a proactive approach to their personal healthcare. Innovation too in healthcare is also driving interesting opportunities for investment. Invested in 10 companies in the Jamie Wyatt European Healthcare sector in At the micro level, increasing demand for high quality but cost effective care of our portfolio is Head of Healthcare sector within healthcare systems that are largely publicly funded is creating attractive currently invested in the last 10 years this sector opportunities for businesses who able to offer outsourced or private pay services. And this in turn is leading to the emergence of branded consumer-focused healthcare businesses seeking to differentiate their offer in the market. Within this broad market Bridgepoint focuses on three specific areas – services, research and many other functions in order to services which people are willing to pay to access. 56 pharma and medtech. These offer a number of highly attractive niches where leading increase efficiency and cost base flexibility. This too This is certainly reflected in our experience in 57 businesses have achieved attractive growth rates. presents opportunities for a middle market private private pay nursing homes and private dentistry. In the services space, pressure on the delivery of national economic equity investor like Bridgepoint. With certain Overarching our three areas of interest in targets is creating more and more outsourcing opportunities as markets worth $20 billion annually, the opportunity the sector is quality. Given the highly regulated providers look for ever greater efficiency in a fragmented associated with outsourcing alone is therefore nature of the market and the obvious importance and highly regulated market. Consolidation and highly attractive. Similarly, the opportunity to help nationally and individually of healthcare, quality is its attendant benefits of improved operating a business with proven pharmaceutical products fundamental. And almost as important is the ability efficiency and enhanced clinical take their domestic offer to an international market to articulate a particular offer in an attractive, quality through shared best plays to our core strengths. appropriate way and explain why a user should practice, is also important In the third of our specialist areas – buy a particular product or service. Solutions take here. Consolidation, for medtech – innovation is rapidly changing the way many forms, but already we are starting to see the example, has underpinned procedures are conducted. One of the most exciting arrival in the healthcare sector of quality reviews the developments in the developments in this area is the use of robotic that introduce a patient-driven scoring system for pharmacy and care home equipment in surgical procedures, typically in healthcare providers. sectors for over 20 years; we the form of enabling remote surgical input from a Bridgepoint has completed over 55 believe there are still attractive, consultant or minimising invasive surgery. investments in the healthcare space, achieving unconsolidated areas of the We are focused on finding opportunities in strong returns for our investors. As a result, it has healthcare market across Europe that attractive long-term growth market niches where a substantial track record of building efficient, would benefit from the same approach. we can help support businesses to accelerate their effective and quality-driven businesses, reflecting In the pharma subsector we are growth. That might be through investment in both the importance of healthcare as a sector and seeing a fundamental transformation of new facilities, taking a new product going into an its attractiveness as an investment opportunity. large pharmaceutical businesses, with the untapped market, or offering currently constrained outsourcing of manufacturing, clinical
Bridgepoint Annual Review 2015 Bridgepoint Annual Review 2015 investments in the healthcare sector investments in the healthcare sector
Balt is a leading French medtech business in the fast-growing Date acquired Location Compagnie Stéphanoise de Santé is the principal independent Date acquired Location neurovascular market. 2015 France operator of clinics in the Rhône-Alpes region of France. It was 2011 France Founded in 1977, it specialises in the design, manufacture and Directors founded in 2005 through the combination of three clinics and Directors distribution of neurovascular devices and products that treat Employees Hervé Novelli the subsequent addition of further facilities in the Rhône-Alpes, Employees Bruno Limonne complex, life-threatening conditions of the brain, specifically Nicolas Plowiecki Aquitaine and Auvergne regions. It now operates from eight Jean Rigondet strokes, aneurysms and arteriovenous malformations (AVMs). 90 Marina Plowiecki sites, mainly polyclinics that offer a broad range of specialist 1,300 Jean François Sautereau medicine and surgery. The company employs 90 people at its facilities in Montmorency Transaction size Stéphane Regnault Transaction size Bridgepoint (France) and Gland (Switzerland). Not disclosed Oern Stuge This investment is managed by Bridgepoint Development Capital. Not disclosed representatives Balt serves French hospitals directly and has an international Bridgepoint Bertrand Demesse network of over 100 distributors worldwide. Revenue representatives Revenue Aymeric Marraud Vincent-Gaël Baudet des Grottes €40m Frédéric Pescatori €120m Olivier Nemsguern Website Website www.balt.fr www.groupec2s.fr
Care UK is the leading private provider of health and social care Date acquired Location Diaverum is the third largest corporate provider of dialysis Date acquired Location services to the public and private sectors. It provides residential 2010 United Kingdom treatment in the world and the second largest independent 2007 Sweden social care and primary/secondary healthcare services. Since Directors dialysis service provider in Europe. It treats 27,600 patients, Directors investment, Care UK has increased the number of care homes from Employees Mike Parish through 329 clinics, located in 19 countries across Europe, South Employees Dag Andersson 59 to 113 and nearly doubled the number of residents to c.6,000. 14,500 Phil Whitecross America, Australia, the Middle East and Asia. 7,611 Björn Brixer Bridgepoint In 2015, Diaverum continued to build its geographical footprint Annette Kumlien Transaction size representatives by expanding into Kazakhstan, establishing an office in China, Transaction size Alan Milburn £414m Raoul Hughes and strengthening its position in Romania through a strategic Not disclosed Bridgepoint Rob Moores add-on acquisition. representatives 58 Revenue Website Revenue Martin Dunn 59 £687m www.careuk.com €583m Héctor Pérez Website www.diaverum.com
Médipôle Partenaires (created by the merger of Médipôle with Médi- Date acquired Location Partenaires in June 2014) is the second largest independent private 2011 France hospital group in France. The group operates 38 clinics and 6,600 Directors beds in France’s most demographically attractive regions and covers Employees Benoît Fournial the patient’s full ‘care pathway’ including high-margin pre and post- Marcel Hermann operative care. 8,500 Bridgepoint Transaction size representatives Not disclosed Benoît Bassi Vincent-Gaël Baudet Revenue William Paul €865m Fabrice Turcq Website www.medi-partenaires.com
Bridgepoint Annual Review 2015 Bridgepoint Annual Review 2015 investments in the healthcare sector investments in the healthcare sector
Oasis is the leading branded provider of public and private dentistry Date acquired Location Phlexglobal is a specialist provider of technology-enabled document Date acquired Locations in the UK and Ireland. Acquired in 2013 with c.200 practices, the 2013 United Kingdom management solutions and other support services to the global 2014 United Kingdom/ business has grown through acquisition to over 350 practices. Directors pharmaceutical market. It is a recognised leader in technology- United States In 2014 the company completed the £30m acquisition of Smiles, Employees Justin Ash led solutions for the management of Trial Master Files (TMF), a key Employees Directors a chain of 77 largely private-pay focused practices. Bill Colvin component of clinical trials. Stella Donoghue In 2015 Oasis added 34 new practices in the UK, as well as three 3,500 Jordi Gonzalez It specialises in software and services used by global pharmaceutical, 219 Steve Kent greenfield sites. Transaction size David Leatherbarrow biotech sponsors and clinical research organisations to manage their Transaction size Peter McNaney £183m Julian Perry TMFs clinical trial records. £42m Rick Riegel Stuart Rose This investment is managed by Bridgepoint Development Capital. Karen Roy Revenue Bridgepoint Revenue Bridgepoint representatives representatives £275m Patrick Fox £20.1m Matt Legg Jamie Wyatt Kevin Reynolds Website Website www.oasisdentalcare.com www.phlexglobal.com
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Bridgepoint Annual Review 2015 Bridgepoint Annual Review 2015 sector expertise: Manufacturing & Industrials sector expertise: Manufacturing & Industrials Manufacturing & Industrials Manufacturing & Industrials is one of Bridgepoint’s most international areas of interest, touching many different geographies and including many % different technologies. Our interest in this sector reflects its importance to 9 everyday life: the sector is ultimately responsible for creating the products
and associated services that make the world work. As a sector it may not of our portfolio is always be high profile, but it is unquestionably of high importance. currently invested in this sector Chris Bell Head of Manufacturing & Industrials sector Its significance reflects a number of contemporary global ‘megatrends’. For example, emerging market growth, increasing urbanisation and the importance of aerospace and transport are all global issues that directly impact the sector. Take one example: in China alone, 50 new airports are being built to accommodate anticipated increases in domestic and international air travel. opportunity. In Europe there are over 2,500 Bridgepoint has been investing in industrial 62 Similarly, the global middle classes are growing at 18% annually, with a manufacturing and industrial companies in our and manufacturing businesses for 30 years and 63 corresponding increase in demand for products and services originating in the size range, a rich seam we are able to work through has built up a wealth of knowledge and experience manufacturing and industrial sector. Increased to identify promising investment opportunities. that we continue to put to good use today. We have global energy demand will make the need In addition, Europe enjoys market leadership in a longstanding track record in this space and have for energy efficient products more the form of unique manufacturing companies that invested €2 billion of equity in 25 companies important than ever, while robot produce niche products with ready demand around and achieved strong returns. In the last eight usage is increasing at between 5% the world. years we have acquired six businesses, making and 8% annually, with key areas Against this background Bridgepoint focuses Bridgepoint one of the most active PE funds in like automotive robotics growing on four key segments within the sector that Europe in this sector. at over 10%. Understanding and we believe will experience significant growth, exploiting these megatrends is reflecting the global megatrends mentioned above: at the heart of our approach to industrial products, aerospace, energy and power investment in this sector. and chemicals, with secondary interest in building Interestingly, the sheer products and automotive. importance of Manufacturing We look in particular for international & Industrials makes it a companies with real points of differentiation, high particularly robust sector, with recurring income and strong pricing power. As a €1bn many companies able to take result, almost all the companies in this sector we invested in seven companies market cycles in their stride. have acquired in recent years have demonstrated in the European Manufacturing & The type of companies we are strong earnings margins. We are also attracted to Industrials sector in the last 10 years interested in tend to have well- new products and technologies with a clear reason developed, well tested business models. to exist, as well as hybrid product/service offerings Another reason for our interest is the scale of where a product is recontextualised as a service.
Bridgepoint Annual Review 2015 Bridgepoint Annual Review 2015 investments in the Manufacturing & Industrials sector investments in the Manufacturing & Industrials sector
AHT Cooling Systems is the leading manufacturer of commercial Date acquired Location DMC Power sells permanent couplings and associated tooling to the Date acquired Location ‘plug-in’ refrigeration equipment for some of the largest and fastest 2013 Austria North American electricity transmission and distribution industry for 2007 United States growing food retailers and food/beverage producers in the world. Director use primarily in high voltage electricity sub-stations. Its technology Directors is unique in its industry and is successfully displacing welded and In 2015, the company, which is known for its lower cost, energy Employees Hans Aage Joergensen Employees Eben Kane efficiency, flexibility and speed of delivery, continued in rolling out bolted connection techniques, which it materially outperforms. Tony Ward Bridgepoint its new product range – plug-in wall-mounted cabinets – across 1,250 In 2015 the company was granted patents for its new transmission 125 representatives Bridgepoint Europe. It also made significant investments in new product Transaction size live and grounding connectors. Transaction size Michael Davy representative development that will strengthen its reputation as an innovation Marc Zügel DMC Power was part of another Bridgepoint investment, Michael Davy leader for plug-in commercial refrigeration cabinets. AHT Not disclosed Not disclosed Permaswage, the market leader in the manufacture of permanent Website continued to build its geographical footprint by opening offices Website Revenue and separable couplings for aerospace companies, before the latter Revenue www.dmcpower.com in the Nordics and Russia and identified interesting overseas www.aht.at/en was sold to PCC, with Bridgepoint retaining its stake in DMC Power. growth opportunities. €365m $24.7m
The Flexitallic Group is the market leader in customised high- Date acquired Location performance mission-critical sealing solutions and products to the 2013 France / Global global oil, gas and power generation industries. Directors Headquartered in France, the company has eight production sites Employees Gerry Maters in the US, Canada, UK, France, Middle East and China, with almost 1,000 Jon Stokes three-quarters of its revenues sourced from North America. It serves Bridgepoint a long-standing client base of over 900 clients thanks to a technical Transaction size representatives sales force who set industry-leading standards of service and €450m Michael Davy Ian Dugan 64 Revenue Frédéric Pescatori 65 $200m Website www.flexitallicgroup.com
Bridgepoint Annual Review 2015 Bridgepoint Annual Review 2015 sector expertise: Media & Technology sector expertise: Media & Technology Media & Technology In the past the distinction between media and technology was obvious; today that boundary is increasingly blurred as media resources and channels % migrate online – to the extent that it is sometimes hard to say whether a 15 particular product or service belongs under one heading or the other.
In short, the old divide between TV, radio, cinema and sports on the one of our portfolio is hand, and software and the internet on the other is largely irrelevant. currently invested in this sector
Our interest in this fast-moving sector reflects the fact that the world is increasingly online. Platforms and marketplaces are rapidly digitising, while the impending Xavier Robert ‘internet of things’ promises to open up a whole new world of opportunity. Head of Media & Technology sector This dynamic has another important implication: technology businesses have a global market from day one, and global means increased potential for growth in the form of access to lucrative US and Asian markets. As a growth investor, technology is therefore an obvious area of interest for Bridgepoint. It’s equally important that technology touches and influences all in the sense that they are not closely tied to the It is an approach that has worked, our areas of interest. In many cases it makes more sense 66 laws or practices of a particular country. The more enabling us to use our knowledge and 67 to think of technology as a horizontal, cross-sector globally relevant a product or service is, the better. experience to profitable use. By shifting our function rather than a discrete vertical like Another important characteristic we look focus from traditional media to the world of Consumer or Healthcare. Technology’s for is a business model based on subscription technology, we have created the right conditions all-pervasiveness means it is essential rather than advertising. Subscription churn rates for the companies we back to succeed long into we understand precisely how it can tend to be low, so income streams are steady and the future. enhance how we work, knowledge predictable. Relying on advertising alone is far we can then use to inform our more challenging and unpredictable. investment decision-making. Companies that meet these criteria can In terms of actual investments, deliver impressive results, often, as is the case with the media & technology companies successful software businesses, achieving high we are interested in all share double-digit profit on sales. Their products tend certain characteristics. Clearly also to be “sticky”, in the sense that changing to there has to be a market for a competitor’s offering involves major upheaval, whatever they are selling. encouraging companies to stick with what they have. We also look for companies with Looking ahead, we foresee opportunity the right team and resources driven by one of the key characteristics of in place to implement their this sector: the sheer pace of change. In many strategy. In a sector where hype subsectors business models are far from €1.5bn can sometimes outstrip performance, established, so we closely monitor the latest their ability to actually deliver is crucial. Invested in 10 companies in the developments in order to identify interesting At the same time we look for companies European Media & Technology opportunities the moment they emerge. whose products have the widest possible market, sector in the last 10 years
Bridgepoint Annual Review 2015 Bridgepoint Annual Review 2015 investments in the Media & Technology sector investments in the Media & Technology sector
BigHand is the largest provider of productivity-enhancing software Date acquired Location eFront is the leading software provider of financial solutions Date acquired Location for busy time-focused professionals in the legal, healthcare and 2012 United Kingdom for managing alternative investments. It provides end-to-end 2015 France professional services markets. Directors solutions dedicated to the financial services industry, specialising Director It currently supports over 250,000 professionals globally across 1,950 Employees Jon Ardron in enterprise risk management and alternative investments. Employees Olivier Dellenbach customer organisations with offices in London, Chicago, Sydney, 146 Ian Churchill Its solutions serve more than 800 customers and over 100,000 633 Bridgepoint Toronto and Eindhoven. The company recently launched BigHand Graham Gilbert users in 48 countries serviced by 21 offices worldwide, representatives V5, an upgrade and expansion of its software product suite. This new Transaction size Sam Toulson including many of the largest blue chip private equity investors Transaction size Martin Dunn innovation means BigHand is now able to offer a range of products Bridgepoint and managers worldwide, typically those with private equity €300m David Nicault across ‘speech, delegation’, ‘process’ and ‘improvement’ themes to £48m representatives investments greater than $1bn. Xavier Robert their growing and international customer base. Revenue Alan Payne 2015 saw eFront attain a double digit growth rate, adding more Revenue Website This investment is managed by Bridgepoint Development Capital. £25m Mark Stroud than 100 new clients in the year. $102.7m www.efront.com Website www.bighand.com
Dorna SBK is an international sports management business that holds Date acquired Location the exclusive global rights to organise the FIM Road Racing World 2013 Spain Championship (MotoGP) until 2041, and, the FIM World Superbike Directors Championship (SBK) until 2036. The company generates its revenues Employees Enrique Aldama from race circuit fees, TV broadcast contracts, sponsorship and Carmelo Ezpeleta advertising as well as corporate hospitality services. 316 Bridgepoint Transaction size representatives Not disclosed William Jackson José Maria Maldonado 68 Revenue William Paul 69 €309m Website www.dorna.com
Bridgepoint Annual Review 2015 Bridgepoint Annual Review 2015 investments in the Media & Technology sector investments in the Media & Technology sector
In December 2013, Groupe Moniteur merged with Infopro, creating Date acquired Location Trustly was founded in 2008 and provides a proprietary online Date acquired Location the number one professional information group in France. The group 2006 France banking e-payment solution which is designed to make online 2014 Sweden provides quality and value added content for various sectors such as Directors payments more convenient, faster, simpler and safer. It currently Directors automotive, construction and local authorities. Today it is one of the Employees Henry Capelle handles around 1.5m payments per month with the business Employees Andreas Bernstrom most advanced information groups following its migration from print Christophe Czajka targeting online merchants who value safety, high sales conversion, Lukas Gratte to digital media. 2,400 Thomas de Villeneuve consumer convenience and those who are at the forefront of 88 Carl Wilsson adopting new technology. The company is focused on merchants In 2015, Infopro completed the acquisition of EBP Group, a provider Transaction size Eddie Misrahi Transaction size Bridgepoint with large volumes of pay-ins/pay-outs who value real-time of trade publications and data to the construction industry Bridgepoint representatives Not disclosed processing and account reconciliation functionality. Not disclosed headquartered in Belgium. This will enable the group to expand its representative Johan Dahlfors international footprint and offers significant cost savings. Revenue Benoit Bassi During 2015, Trustly has continued to broaden its network of Revenue Magnus Gottås integrated merchants and banks and has expanded its geographical Website Website €291m coverage with 21 new European markets, for a total of 29 countries. SEK 193m www.infopro-digital.com www.trustly.com The investment is managed by Bridgepoint Development Capital.
Infinitas Learning is one of Europe’s leading educational content Date acquired Location companies, providing a range of innovative and engaging products 2007 The Netherlands and services for teaching and learning. Directors Its principal activities are in the Netherlands, Sweden and Belgium Employees Clive Hay-Smith where it has market-leading positions, providing content and 625 Natascha van Nieuwenburg e-learning materials for primary schools, secondary schools and Bridgepoint further education colleges. Products span interactive software, Transaction size representative online learning, e-books, audio books and textbooks. It also has an Daniel Wagener active product development programme to meet the needs of new €774m Website and developing curricula. 70 Revenue www.infinitaslearning.com 71 €217m
MVF is a technology-enabled provider of international online Date acquired Location lead generation services to a variety of industry sectors including 2015 United Kingdom various B2B markets, market research, relocations, education, Directors clean tech and healthcare. Employees Jules Hopkinson It specialises in online customer acquisition and lead generation Tom Morgan using proprietary technology, data-driven analytics and in-house 310 Peter Rigby digital marketing expertise to provide some of the world’s leading Transaction size Titus Sharpe brands with high volumes of potential new customers that Not disclosed Michael Teixeira generate a strong return on investment. Bridgepoint This investment is managed by Bridgepoint Development Capital. Revenue representatives Michael Black £36m Robin Lawson Website www.mvfglobal.com
Bridgepoint Annual Review 2015 Bridgepoint Annual Review 2015 Current investments Current investments
Current investments Portfolio company Sector Date acquired Original deal size Revenue Fund Fat Face Consumer 2007 £360m £205m BE III
Flexitallic Manufacturing & Industrials 2013 €450m $200m BE IV
Foncia Business Services 2011 Not disclosed €695m BE IV
Portfolio company Sector Date acquired Original deal size Revenue Fund Histoire d’Or Consumer 2010 €599m €378m BE IV
1st Credit Financial Services 2004 £67m £33m BE II Hobbycraft Consumer 2010 not disclosed £151m BE IV
AHT Cooling Systems Manufacturing & Industrials 2013 not disclosed €365m BE IV Infinitas Learning Media & Technology 2007 €774m €217m BE III
A-Katsastus Group Business Services 2006 not disclosed €111m BE II Infopro Media & Technology 2006 not disclosed €291m BE III
Anaveo* Business Services 2015 not disclosed €43.7m BDC II Inspired Thinking Group* Business Services 2014 £28m £68m BDC II
Appleby Fidicury Services Financial Services 2015 not disclosed $84.6m BE V KGH Customs Services* Business Services 2013 not disclosed seK 581m BDC I/II
Azzurri Consumer 2015 £250m £218m BE V Leeds Bradford Airport Business Services 2007 £145m £28.4m BE III
Balt Healthcare 2015 not disclosed €40m BE V Limoni Consumer 2006 not disclosed €222m BE III
Beck & Pollitzer* Business Services 2007 £55m £72m BDC I LOC Group* Business Services 2013 not disclosed £65m BDC II 72 73 BigHand* Media & Technology 2012 £48m £25m BDC I/II Médipôle Partenaires Healthcare 2011 Not disclosed €865m BE IV
Cambridge Education Group Business Services 2013 £185m £110m BE IV Moneycorp Financial Services 2014 £212m £130m BE IV
Care UK Healthcare 2010 £414m £687m BE IV MVF* Media & Technology 2015 not disclosed £36m BDC II
Casino France Operations Consumer 2005 not disclosed €10m BE II Nordic Cinema Group Consumer 2015 seK 4.7bn seK 2.9m BE V
Compagnie Stéphanoise de Santé (C2S) Healthcare 2011 Not disclosed €120m BC I Oasis Dental Healthcare 2013 £183m £275m BE IV
CTL Logistics Business Services 2008 not disclosed €162m BE III Phlexglobal* Healthcare 2014 £42m £20.1m BDC II
Diaverum Healthcare 2007 not disclosed €583m BE III Pret A Manger Consumer 2008 £364m £671m BE III
DMC Power Manufacturing & Industrials 2007 not disclosed $24.7m BE III Rodenstock Consumer 2007 not disclosed €417m BE III
Dorna SBK Media & Technology 2013 not disclosed €309m BE IV The Dining Club Group* Consumer 2015 not disclosed £17.5m BDC II
Dr Gerard Consumer 2013 not disclosed €86m BE IV Trustly* Media & Technology 2014 not disclosed seK 193m BDC II
eFront Media & Technology 2015 €300m $102.7m BE IV TüvTurk Business Services 2009 tRY347m tRY120m BE IV
Element Materials Technology Business Services 2015 not disclosed $291m BE V Wiggle Consumer 2011 £180m £193m BE IV
* Denotes a Bridgepoint Development Capital investment * Denotes a Bridgepoint Development Capital investment
Bridgepoint Annual Review 2015 Bridgepoint Annual Review 2015 Investing responsibly Investing responsibly
Social factors
Through our board representatives, we work Environmental with management teams Investing responsibly of investee companies to Governance factors implement appropriate social policies in their factors Energy use, waste and operations and procedures. recycling, water use and Companies in which We’ve built responsible investing As a signatory of the United conservation, and supply Bridgepoint invests principles into our work and business Nations’ Principles for Responsible chain environmental have similar governance management. structures in place to practices, recognising that being a Investment we also publicly undertake ensure compliance with responsible investor is quite simply to demonstrate our commitment to the law and effective monitoring of their good for our business. That is why we embed relevant environmental, social performance. have put in place strong environmental, and governance (‘ESG’) criteria into social and governance principles. our decision-making and ownership This approach is overseen by our Audit practices and in that of the management & Risk Committee, comprising senior teams of the companies our funds own. members of the team and led by the chairman of our Advisory Board.
74 75
“We build responsible investment principles UNPRI into all of our work and Bridgepoint is a signatory business practices.” of the United Nations Bridgepoint Principles for Responsible Daniel Wagener director, Bridgepoint Charitable Trust Investment.
Bridgepoint has a charitable foundation formed and funded by the Firm and its employees that focuses on charitable activities in the broad areas of education and the environment within Europe.
Bridgepoint Annual Review 2015 Bridgepoint Annual Review 2015 Investing responsibly Investing responsibly
ESG in practice Before we make an investment... After we make an investment
R For new investments, Bridgepoint compliance with statutory Once a company becomes EMU NE RA TI identifies material environmental or regulatory requirements, part of our portfolio, we ON IN , VE AU ST D and social risks and opportunities Bridgepoint agrees plans with work with management M IT EN A IS T N S A D Y D as part of its investment selection management for remedying this teams to implement AL V R N IS IS A O K R G T 2 Y C process. We do so by requiring that within an appropriate time period. appropriate environmental S N . O E E IN C M V O M T E M M S S M I pre-investment proposals include We also expect each portfolio and social policies in their T E T I V M T T N T E I E E E an analysis of ESG issues that are company to assess the material operations and procedures N E S E T R P brought to the attention of our environmental risks of their that are relevant to their . 1 Investment Advisory Committee. operations and to work towards sector and in accordance Bridgepoint Portfolio companies must relevant international good practice with industry standards. investment
comply with relevant environmental standards to mitigate environmental We encourage lifecycle
T
and employment laws, particularly risks with targets and timelines investee companies to N E
I N 4 M in relation to employees’ health for improvement. This is normally work with like-minded V E . T S R S T E I E and safety, rights and welfare. included within our 100-day plan trading partners to assess N I V G N V N IN E I T S T If a company is only in partial when we acquire a business. the material environmental H T S L E P O TA B 3. N R R E and social risks of IS O M K A N S M DE RO H A R VI E A N C N L their operations and to X R A O E A P I G MM I L N E U C O G M NIT SO E R B EN Y C work towards relevant E E T N N ST A E P RN W R E international good practice O AC OV P TI G PO CE R 76 standards to mitigate future TU 77 NI TI ES risks with targets and timelines for improvement.
Environmental factors Social factors Governance factors We charge our portfolio Through our board Companies in which Bridgepoint management teams to instigate representatives, we work with invests have similar governance a range of initiatives that management teams of investee structures in place to ensure typically seek to improve energy companies to implement compliance with the law and water use, waste recycling appropriate social policies in and effective monitoring and more ethical supply chain their operations and procedures. of their performance. They management. This also means These focus on employee are also structured so that expecting suppliers to be health and safety, labour major decisions by a portfolio able to demonstrate material rights and welfare. Minimally, company can only be reached compliance with relevant local, we expect suppliers to be with the agreement of Gwenaëlle Le Ho Daguzan national and international able to demonstrate material Bridgepoint. Director, Paris environmental laws. compliance with local, national Maciej Chrystowski and international labour laws Investment Director, Paris including those relating to health and safety.
Bridgepoint Annual Review 2015 Bridgepoint Annual Review 2015 Investing responsibly Investing responsibly
Integrating responsible and sustainable Case study investing into our portfolio O asis
Oasis Dental Care is the leading provider of Case study Case study private dentistry in the UK and Ireland. 70% of its practices now offer a programme of outreach and P ret A Manger T astecard oral health education to their local communities. All precious metals (from extractions and treatments) are responsibly recovered. 50% of Alongside its own dedicated higher welfare chicken flocks, in 2015 Over the last four years recovery funds are used for other ESG activities Pret A Manger made further progress in welfare standards in duck, Tastecard has been a including nurse volunteers for their charity lobster (US), laying chickens (US) and pork. Compassion in World sponsor of Mary’s Meals, partner, Bridge2Aid, training rural health workers Farming awarded the company in the USA the good (whole egg) an international effort in emergency dental care in Tanzania. award. The Pret Coffee Fund, now in its second year, is supporting focused on breaking the 81 young farmers in one of its main Peruvian coffee cooperatives poverty cycle by bringing through a coffee growing training programme that also encourages food and education to the and develops entrepreneurial diversification. Seed funding was also world’s poorest communities. provided for an organic fertiliser development programme. In 2015 Mary’s Meals provided a daily meal in a Case study place of education to over 1m children across the world. Fat Face Tastecard, through the 78 79 support of colleagues and In 2015, Fat Face developed its sustainability card members, raised over strategy to reflect key sustainability trends in £230,000 for Mary’s Meals to the retail and garment sectors. With five key establish five school feeding pillars, it covers all aspects of the business, with a programmes across Malawi, greater investment in responsible sourcing. This providing food to thousands included a supplier development and capacity of children every day. building programme aimed at improving social and environmental performance of Fat Face’s Chinese suppliers. The company’s commitment to sustainability also led to an increase in activity by the Fat Face Foundation – most notably the unique and innovative ‘Thanks for Giving’ campaign, which replaced the traditional Black Friday mass discounting of other retailers and resulted in £295,419 being raised for charity in 2015/16.
Bridgepoint Annual Review 2015 Bridgepoint Annual Review 2015 Investing responsibly Investing responsibly
Ben Martin Bridgepoint is led by an experienced team Legal Counsel, London of partners and is managed by a Board drawn from the Partnership
The group board, Bridgepoint Bridgepoint has a number of governance structures to ensure that Advisers Group, has executive it remains accountable and transparent, and that there is complete responsibility for setting the alignment of interest between the Firm and its investors. Firm’s strategy and ensuring Operating Committees for each of our two areas of activity, that the shared values and Bridgepoint Europe and Bridgepoint Development Capital, are business objectives we have charged with our day-to-day operations in these areas. set ourselves are upheld and Investment decisions are reached through an Investment met. Its members include: Advisory Committee comprising members of the group board as well as other partners with specific sector or operating expertise. John Barber Remuneration, Audit and Risk Committees ensure the proper Benoit Bassi and fair allocation of the laws and regulatory practices. Michael Black Chris Busby European Advisory Board Raoul Hughes The Firm also benefits from the input of a European Advisory Board. William Jackson It works to provide insight, knowledge and experience to allow José María Maldonado Bridgepoint team members to make better informed decisions about Frédéric Pescatori investments and development as a firm. 80 Guy Weldon It comprises figures from different aspects of corporate and 81 political life who are able to provide us with external perspectives on strategic, political, social and other matters to supplement the A list of partners and other expertise of the Bridgepoint team. colleagues is profiled in full Risk Management on the Bridgepoint website A partner-level General Counsel is responsible for ensuring that (www.bridgepoint.eu) the Firm respects and adheres to internal policies and operating The Firm supports procedures. Internal guidelines are also in place to eliminate and endorses the conflicts of interest, taking into account the Firm’s obligations under recommendations of the its fund management agreements and fiduciary duties. In addressing Walker Guidelines for greater conflicts, it seeks to do so with integrity, professionalism and in the disclosure and transparency best interest of its investors. in private equity. Each Bridgepoint fund also has an Investors’ Committee drawn from representatives of investors in that fund to provide a forum for discussion of the fund’s investment strategy or performance and any potential or actual conflicts of interest.
Bridgepoint Annual Review 2015 Bridgepoint Annual Review 2015 Investing responsibly Investing responsibly
New charity Bridgepoint Charitable Trust Aenilce 2015 Our work in the broader community Spain
Aenilce is a Spanish charity that operates a day-care centre Bridgepoint has a charitable foundation BCT also matches the charitable fund for children and teenagers with severe brain disabilities, formed and funded by the Firm and its raising efforts of individual staff members providing specialist treatment including physiotherapy, employees that focuses on charitable and supports the charities sponsored by speech therapy and psychology. BCT is supporting the charity as it expands its activities activities in the broad areas of education colleagues or companies having a close into a larger building which requires renovation work to and the environment within Europe. relationship with the Firm. triple its capacity to 60 children. The investment includes The Bridgepoint Charitable Trust In 2015 we donated over £350,000 the renovation of various rooms in the building, adapting the (‘BCT’), with 10 trustees (including to charities, including the six adopted rooms to the special requirements of children, and buying new equipment. Construction work on the new centre Website three independent trustees), aims to by Bridgepoint offices – Fryshuset in started in October 2015 and the Foundation is confident that www.fundacionaenilce.org provide support to adopted charities Stockholm, Un Orchestre a l’École in the building will be fully operational by June 2016 when it can in the countries where we operate as France, Teens and Toddlers in the UK, start welcoming children. well as tactical support to the charitable Gut Hausen in Germany. These were Our team in Madrid will also support the project in different ways including helping with financial analysis, activities of individual team members. joined in 2015 by two new charities: negotiations with banks, extending their relationship as the Candidate charities are suggested by AENILCE in Spain and Fundacja Dzieci new building takes shape. local offices for the trustees to consider, Niczyje, or the Nobody’s Children 82 from which a shortlist is drawn up and Foundation, in Poland. To date, BCT has 83 then voted on by team members across made over £1.6 million in donations to the Firm. charitable endeavour across Europe.
New charity Fundacja Dzieci Niczyje 2015 Poland
Fundacja Dzieci Niczyje, or the Nobody’s Children Foundation, is a non-governmental, not-for-profit charity which was established in 1991 within the Polish activities of Médecins du Monde. Originally devised to address ‘social orphanhood’ (hence its name), it has developed over the years to protecting children from abuse by offering help to victims, families and care workers through targeted education and social care programmes. Thanks to BCT support, the Foundation will be able to launch a new support service within its ‘Good Parent – Good Start’ programme which will focus on good parenting skills by helping counteract the effects of postnatal depression and by strengthening family ties Website through working with all the family members. www.fdn.pl
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G ut Hausen Teens and Toddlers Germany United Kingdom
Gut Hausen is a small charity founded in 2008 to promote Teens and Toddlers is a UK charity that seeks to inspire environmental conservation and education, particularly through young people to achieve the self-belief, skills and its work with kindergarten and primary schools. BCT funding is qualifications they need to succeed in education, at work being used to build a new kindergarten outdoor area within a and in life. They achieve this by placing teenagers in 2.5 hectare site within central Frankfurt. nurseries for three hours per week where they mentor a In 2015 we funded the purchase of equipment for the first toddler as well as receive life skills coaching. In our final natural kindergarten in Frankfurt. This has allowed children to year of support, BCT funded 13 Tomorrow’s Leaders explore the site with a mixture of excursions, project work and programmes in existing and new boroughs in London, free play where they are introduced to traditional culture and reaching over 100 teenagers. handicraft techniques such as working and playing with wood, felting and papermaking as well as preparing and cooking the on-site produce such as fruit and vegetables. Website Website www.wunderstiftung.de www.teensandtoddlers.org
84 Fryshuset 85 Sweden
Fryshuset is a Swedish charity, identified by our colleagues in Stockholm, which supports some 14,000 young people in Stockholm, Gothenburg and Malmö around three inter-related platforms of education, social projects and leisure interests. In our final phase of support for the project, we have been able to help it host for a third successful U n Orchestre à l’École year a ‘youth entrepreneurship’ project – France Camp Connect, a four-day summer camp outside Stockholm for young adults. This is In France we renewed our support for Un Orchestre à a forum to educate young adults to become l’École (‘OAE’), a non-profit organisation that transforms tomorrow’s leaders with lectures and creative an entire class in a primary or junior secondary school workshops with focus on entrepreneurship. into an orchestra. OAE, registered by the French Ministry Website www.fryshuset.se of Education, works in schools across France with underprivileged pupils. Under the scheme, pupils are entrusted with a high-quality instrument and that they are responsible for keeping in good condition that they learn to Website play individually and as part of a team. In 2015 BCT funded www.orchestre-ecole.com the set-up of eight orchestras in schools throughout France.
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Our offices
Louis Paul-Dauphin Frankfurt Istanbul London Associate, Bridgepoint Development Capital, Paris Neue Mainzer Straße 28 Vişnezade Mahallesi 95 Wigmore Street 60311 Frankfurt am Main Suleyman Seba Caddesi London W1U 1FB Germany BJK Plaza no:48 United Kingdom Tel: +49 (0) 69 210 877 0 A blok 9.kat D:93-94 Tel: +44 (0) 20 7034 3500 [email protected] Akaretler/Istanbul [email protected] Turkey Tel: +90 212 310 8252 [email protected]
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