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 8 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% BRIDGEPOINT ANNUAL REVIEW 2015 BRIDGEPOINT ANNUAL REVIEW 2015 DISCOVER BRIDGEPOINT DISCOVER BRIDGEPOINT 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 BRIDGEPOINT ANNUAL REVIEW 2015 BRIDGEPOINT ANNUAL REVIEW 2015 NEW INVESTMENTS NEW INVESTMENTS 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