2015 Bridgepoint Annual Revie · BRidgepoint AnnuAl Review 2015 A long-established and experienced...

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2015 Bridgepoint Annual Review

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3 Introduction4 Discover Bridgepoint8 New investments24 Managing Partner’s overview34 Investment and sector expertise72 Current investments74 Investing responsibly82 Bridgepoint Charitable Trust86 Our offices

For over 25 years we’ve partnered with management teams across Europe to build great companies. Using local insight, expertise and resource, we invest in high-performing, well-managed businesses with the potential to grow through expansion, operational transformation or via acquisition. Our aim is to build stronger, broader-based businesses with greatly enhanced long-term growth potential.

Guided by a clear set of values that set out the expectations of the Firm about how we do business and underscore the duty to invest responsibly, our aim is to achieve high quality returns for our investors, colleagues, portfolio companies and their employees.

These values are shared across our Firm and are fundamental to our professional and personal conduct. We believe they define us and help us maintain the highest levels of corporate governance and apply high standards of professionalism uniformly across Bridgepoint.

B R i d g e p o i n t A n n u A l R e v i e w 2 0 1 5

A long-established and experienced investor

oneBridgepoint

Performance-driven

Thoughtful

Straightforward

Performance-driven We settle for nothing less than superior performance achieved by entrepreneurship, initiative, intelligent judgement and teamwork

Thoughtful We always seek to make a difference – for investors, companies or in our duty as a responsible investor within the broader community

Straightforward We are straightforward, open professionals who act without arrogance and embrace the views of others without prejudice


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i n t R o d u c t i o nc o n t e n t s

Jonathan Zhou partner, shanghai

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d i s c o v e R B R i d g e p o i n t d i s c o v e R B R i d g e p o i n t

B R i d g e p o i n t A n n u A l R e v i e w 2 0 1 5B R i d g e p o i n t A n n u A l R e v i e w 2 0 1 5

discover Bridgepoint

in numbers

€12.7bn

€25.7bn

90,000

€20.5bn

320

€9.1bnfunds under management

total value of transactions from €10.4bn invested since 2000

over 90,000 people currently employed by Bridgepoint portfolio companies

of committed capital raised to date

add-on acquisitions made by Bridgepoint companies in last 10 years

returned to investors in last 10 years

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Bridgepoint has been investing in Europe, and specifically in middle market businesses, for over 25 years. It is a place we know and understand. The Firm has been able to do so successfully thanks to its people, its network and relationships across the

region. These have generated an exceptionally deep and broad flow of high quality investment opportunities as well as compelling returns for our investors, allowing us in turn to become one of the leading private equity investors in Europe.

We have a local presence in every major European private equity market. With a network of eight European bases and a portfolio office in Shanghai, we can deploy resources effectively when identifying and completing transactions as well as manage value creation in the businesses we support.

01 Frankfurt02 Istanbul03 London04 Luxembourg05 Madrid

06 Paris07 Shanghai08 Stockholm09 Warsaw

investors by type

investors by locationOver 250 investors from over 30 countries in Bridgepoint funds

Bridgepoint has a blue chip investor base comprising of public and private pension funds, asset managers, family offices, sovereign authorities and insurance companies around the world

our locations

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8

94

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13

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Pension funds 58%Fund of funds 10%Insurance 11%Sovereign wealth fund 8%Endowment 6%

Asset manager 2%Bridgepoint 2%Bank 2%Family office 1%

European Middle East AustralasiaAmericas58% 36% 2% 4%

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€1.7bn

€1.9bn

€1.5bn€1.4bn

€1bn

9% 14%

€500m

d i s c o v e R B R i d g e p o i n t d i s c o v e R B R i d g e p o i n t


Revenue EBITDA

portfolio growth in 2015

through its portfolio...

Business Services €1.7 billion invested in 15 companies in the European Business Services sector in the last 10 years.

Healthcare €1.4 billion invested in 10 companies in the European Healthcare sector in the last 10 years.

Manufacturing & Industrials €1 billion invested in seven companies in the European Manufacturing & Industrials sector in the last 10 years.

Consumer €1.9 billion invested in 14 companies in Consumer sector in the last 10 years.

Financial Services €500 million invested in four companies in the European Financial Services sector in the last 10 years.

Media & Technology €1.5 billion invested in 10 companies in European Media & Technology sector in the last 10 years.

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Ian Dougan Managing director, operational support group

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n e w i n v e s t M e n t s


Fund investments collectively generated 9% and 14% year-on-year average revenue EBITDA growth.

Bridgepoint investments returned over €1.8bn of capital to investors with seven major exits.

Bright futures

Business growthexceeding

targets

Bridgepoint-owned businesses made 42 additional acquisitions in the year as they pursued consolidation and internationalisation strategies.

identifying valueIn 2015 we invested €950m in seven new businesses with a total enterprise value of €2.4bn.

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n e w i n v e s t M e n t s


investments made in 2015

In 2015 Europe continued to provide a high quality range of growth-focused middle market businesses. Bridgepoint’s broad investment and operational resources were strongly positioned to exploit the opportunities provided in Europe as the home of numerous world-leading domestic and exporting enterprises.

Our focus on six sectors brings us an in depth understanding of market trends as well as extensive industrial networks and relationships. In certain cases it can also generate investment opportunities outside intermediated processes as well 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, businesses with high visibility of earnings and contracted income that were overt beneficiaries of economic recovery were on our radar.

We also have a long-standing track record of acquiring sector leaders operating in fragmented markets and using them as platforms for consolidation at accretive valuations.

Generating ‘internal growth’ through operational improvement was also an important driver of earnings growth. We are well resourced to deliver far-reaching business transformation thanks to an extensive team including an Operational Support Group, Portfolio Development Office in Shanghai and a Procurement Team that is unique within European middle market private equity.

“ Broad investment and operational resources were strongly positioned to exploit the opportunities provided by Europe as the home of numerous world-leading domestic and exporting enterprises.”

Guy Weldon partner and chief investment officer

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Anaveo

Anaveo is a French provider of electronic security solutions such as video surveillance, security access control and intrusion detection to small and medium sized businesses.

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, as well as larger integrated chains. It has a network of 11 agencies 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 products using an in-house research and development team, managing new product development and the group’s proprietary software solutions.

The French video surveillance market has demonstrated resilient historic growth and is forecast to expand at 5% p.a. based on continued penetration of video surveillance systems, upgrades to latest technology solutions and a growing replacement market reflecting the progressive shift within its target installed base from analogue to IP systems. With Anaveo’s recent product launches comes the potential to sell into the larger, adjacent €2bn access control market.

Anaveo’s market is highly fragmented with over 40% of the segment comprised of smaller independent players providing the opportunity to accelerate growth via add-on acquisitions. In addition, expansion into new end-markets and the upselling of 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

Sector Business Services

Location France

Directors Grégory Louis Fabrice Tisseur

Bridgepoint representatives Bertrand Demesse Olivier Nemsguern

Website www.anaveo.com

not disclosed Transaction size

€43.7m Revenue

270 Employees

n e w i n v e s t M e n t sn e w i n v e s t M e n t s

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Appleby Fiduciary & Administration (‘AFB’) provides Trust & Corporate Services to a wide range of clients in nine jurisdictions around the world. Clients range from large global corporations from all sectors, to high net worth individuals, families and fund managers, including private equity, hedge funds, real estate and other alternative fund structures.

AFB has three key business lines administering over 10,000 structures for almost 6,000 clients: Corporate Administration which provides incorporation and domiciliation services, Trust Administration which establishes trust structures and then provides day-to-day administration services, and Fund Services, which assists in the launch, incorporation and administration of funds.

The company operates in a market benefitting from long-term structural drivers such as increased regulation, outsourcing and globalisation, all of which lead to underlying annual market growth of 7% globally.

In addition, it is a fragmented market with a large range of small, sub-scale players. There is therefore a clear opportunity for AFB to acquire competitors of various sizes, ranging from individual books of business to larger transformational, multi-jurisdiction or multiservice line businesses. Over time this will allow AFB to consider diversifying by product and geography.

Appleby Fiduciary & Administration

“ 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

Sector Financial Services

Location United Kingdom

Directors Farah Ballands Scott Carter Roger Siddle

Bridgepoint representatives William Paul Emma Watford

Website www.applebyglobal.com


$84.6m Revenue

350 Employees


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Balt

Balt is a leading French medtech business in the fast-growing neurovascular market.

Founded in 1977, it specialises in the design, manufacture and distribution of neurovascular devices and products that treat complex, life-threatening conditions of the brain, specifically strokes, aneurysms and arteriovenous malformations (AVMs). The company employs 90 people at its facilities in Montmorency (France) and Gland (Switzerland).

The business focuses on so-called interventional neuroendovascular radiology (or INR) therapy, involving minimally invasive techniques, as opposed to traditional ‘open’ surgery, to correct and stabilise these damaging conditions. Successful intervention using INR techniques leads to substantially improved post-operative outcomes when compared to traditional surgeries and significant reductions in the levels of costly after-care required. INR devices include access and support (catheters, guidewires), embolisation (coils, stents, embolic liquid) and thrombectomy devices (stent retrievers).

Balt serves French hospitals directly and has an international network of over 100 distributors covering Europe and beyond.

Volumes of INR devices, currently estimated to be worth €1bn, are expected to grow at double digit rates as the number of patients diagnosed with and treated for neurovascular problems using INR techniques grows, on the back of an ageing population and increased rates of obesity.

“ 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

Sector Healthcare

Location France

Directors Hervé Novelli Nicolas Plowiecki Marina Plowiecki Stéphane Regnault Oern Stuge

Bridgepoint representatives Vincent-Gaël Baudet Frédéric Pescatori

Website www.balt.fr


€40m Revenue

90 Employees


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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 country’s most popular restaurant chains, as well as over 6,000 independent restaurants.

It operates two branded membership cards, tastecard and the Gourmet Society, and offers a compelling proposition for consumers thanks to the size of its restaurant network and level 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 offer their customers memberships as part of a bundled offering, such as a premium bank account.

Over the year a Dining Club member is able to make considerable savings on eating out, with only two to three uses of the card typically paying back the initial outlay for membership. In parallel, participating restaurants gain profitable incremental footfall. Total UK consumer spend on eating out was £78 billion in 2014. Regular diners eat out on average 34 times a year; discount card members by contrast eat out 45 times a year.

With discounted dining now an established feature of the growing eating out market, the sector is now being increasingly driven by the technology needs of the consumer. The company will therefore extend its technological capabilities and broaden its geographical coverage to consolidate its already significant share of the UK discount dining club market.


“ 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

Sector Consumer


Directors Annette Court Dave Cuckney Ben Eaton Sam Shaw Matt Turner

Bridgepoint representatives Matt Legg Alan Payne Kevin Reynolds

Websites www.tastecard.co.uk www.gourmetsociety.co.uk


£17.5m Revenue

102 Employees


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element Materials technology

Element Materials Technology is a global leader in materials and product qualification testing for the aerospace, oil & gas and transportation markets – all of which require technical testing 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 it has 53 laboratories in Europe, the US and China, over 1,800 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, often placing it under extreme pressure and heat; and Production Qualification Testing, which is typically carried out before a product or component goes into production so that it can be certified and pass the appropriate quality assurance tests.

The Testing, Inspection and Certification market is growing strongly on the back of increasing regulatory and complexity requirements. In addition, long-term outsourcing trends and the consolidation of suppliers (as the OEMs increasingly demand consistent standards and ‘one stop shop’ testing providers across fragmented supply chains), will provide opportunities for Element to grow.

The testing market globally remains fragmented, particularly in aerospace where Element already leads the market. There is therefore significant potential to accelerate Element’s growth through further market consolidation.

“ 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

Sector Business Services


Directors Charles Noall Jo Wetz

Bridgepoint representatives Chris Busby Raoul Hughes

Website www.element.com


$291m Revenue

1,800 Employees


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MVF is a technology-enabled provider of international online lead generation services to a variety of industry sectors including various B2B markets, market research, relocations, education, clean tech and healthcare.

It specialises in online customer acquisition and lead generation using proprietary technology, data-driven analytics and in-house digital marketing expertise to provide some of 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 complexity challenges created by trends such as the rapid growth of mobile advertising, social media and digital marketing channels, is driving a strong demand for outsourced online lead generation to digital specialists like MVF. Although lead generation currently accounts for less than 5% of the digital advertising market, it is growing at 20% pa.

MVF is growing rapidly based on strong points of difference including deep in-house online digital marketing expertise, efficient proprietary technology and a scale advantage over competitors that allows it to deliver a high volume of international sales-ready leads to its customers with strong ROI transparency.


MvF

“ 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

Sector Media & Technology


Directors Jules Hopkinson Tom Morgan Peter Rigby Titus Sharpe Michael Teixeira

Bridgepoint representatives Michael Black Robin Lawson

Website www.mvfglobal.com


£36m Revenue

310 Employees


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Headquartered in Stockholm, the Nordic Cinema Group (‘NCG’) is the leading cinema operator in the Nordic region with 70 cinemas, 472 screens and a 44% share of total Nordic box office 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 consolidation in larger cities.

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 in high-footfall locations such as shopping malls, transport hubs 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.

With a strong focus on innovation, NCG cinemas feature premium seating and VIP screening rooms, as well as the first IMAX screen in Sweden, opened in Stockholm in 2015, with a second planned in Oslo in 2017.

Although NCG is the clear market leader with a well-invested estate in prime urban locations, it also has room to expand organically in its core markets. Further scope exists to accelerate growth through smaller bolt-on acquisitions, in the region and in adjacent geographies.

As evidenced by growing admission trends over recent years, cinema as an affordable out-of-home experience remains robust despite potentially disruptive technological developments. It also represents an increasingly important and profitable part of the movie industry, notwithstanding these new forms of content delivery.

nordic cinema group

Sector Consumer

Location Sweden

Directors Anders Ehrling Erik Haegerstrand Torsten Larsson Simon Wright

Bridgepoint representatives Christopher Bley Mika Herold Mikael Lövgren

Website www.nordiccinema group.com

seK4.7bn Transaction size

seK2.9bn Revenue

1,500 Employees

“ 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


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M A n A g i n g p A R t n e R ’ s o v e R v i e wM A n A g i n g p A R t n e R ’ s o v e R v i e w


strategy on track

Facing into the future

2015 was a year where we successfully sought new opportunities in growth companies across Europe.

Volatility will create opportunity and we will continue to exploit our position in Europe’s middle market.

A message from our Managing partner

Operating highlightsI am pleased to report that Bridgepoint enjoyed a strong year in 2015 with our two businesses, Bridgepoint Europe and Bridgepoint Development Capital, achieving excellent results thanks to the performance of the companies owned by Bridgepoint funds and our own team’s skill in investing, managing businesses and selling well.

Over the last 12 months we have carefully sought out interesting new investment opportunities in growth companies across Europe. During the year we invested €950 million in seven companies with a total enterprise value of €2.4 billion. In addition, Bridgepoint–owned businesses completed 42 add-on acquisitions in the year, pursuing consolidation strategies to build scale and improve their competitive position. Importantly we matched this new investment activity with strong exit results returning some €1.8 billion to our investors in 2015, a number that exceeded our initial expectations for the year by some measure.

By the end of 2015, Bridgepoint Europe V, the €4 billion middle market buyout fund that we finished raising earlier in the year, had made its fifth investment and its new investments were already pursuing accelerated growth through add-on acquisitions in line with the Fund’s original strategy.

Bridgepoint Development Capital II, our €350 million lower mid-market buyout and growth capital fund, has now committed a large part of its primary capital, with 11 transactions in the portfolio at the end of the year. As a result, we expect to return to investors in 2016 to raise a larger successor fund to continue to build this practice, which has flourished under the leadership of Michael Black and his colleagues.

Resilience and an ability to drive long-term value creation characterised much of the work of our portfolio.

people and talent

portfolio momentum

14 new team members joined us in 2015, adding to our strengths and depth.

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“ Over the last 12 months we have carefully sought out interesting new investment opportunities in growth companies across Europe. During the year we invested €950 million in seven companies with a total enterprise value of €2.4 billion.”

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Europe and the environment for investing The contrast between improving economic fundamentals in Europe and periodic outbreaks of macro volatility resulted in an uneven year for the investment outlook in 2015. The slowing rate of economic growth in China contributed to weaker European equity market sentiment. This was offset by better than forecast underlying progress in European economies boosted by the benefit of a lower Euro helping the region’s many exporters and falling oil prices continuing to act as an economic stimulus, putting money back into the pockets of consumers.

During 2015 acquisition pricing remained high in Europe, driven by favourable debt markets and a recognition from international investors that Europe represented a good cycle play, especially on a currency-adjusted basis. This remained both a blessing and a challenge, 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 clarity of investment case, transaction selectivity and a focus on relative value based on looking at sector by sector valuations over the long term.

It also meant that Bridgepoint’s broad investment and operational resources across Europe were deployed with a particular focus on investing in businesses with a combination of characteristics: sustainable end-market growth, disciplined investment at attractive valuations, value creation opportunities via market consolidation and operational expertise. These are all reflected in the new investments made by both BDC and BE in the year.

Portfolio momentumBridgepoint funds’ investments collectively generated 9% and 14% year-on-year average revenue and EBITDA growth. This is a real demonstration of our portfolio companies’ continuing resilience and ability to drive long-term value creation in what in Europe remains a relatively low-growth and frequently volatile environment.


In this environment revenue development initiatives featured heavily in the Bridgepoint portfolio, examples of which include expansion of LGC into China and the US, new school construction at CEG, new classes of vehicle tests for TüvTurk in Turkey, R&D programmes at AHT and eFront, and Solhaga’s expansion outside of Sweden into the Norwegian market. All are aimed at driving sales growth.

A continued high level of add-on acquisition activity is also helping value creation. In 2015 this ranged from LGC’s £90m US acquisition ( just prior to its subsequent sale at the end of 2015) to smaller in-fill acquisitions completed at CEG, Moneycorp, Foncia, Oasis and Azzurri.


portfolio performance

“ Buying well required high quality origination, absolute clarity of investment case, transaction selectivity and a focus on relative value.”

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Revenue growth

11% 12% 9%

2013

2013

2014

2014

2015

2015

13% 11% 14%

EBITDA growth

Fabrice Turcq investment director, paris

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Returning capital to investorsIn 2015 Bridgepoint investments returned over €1.8 billion of capital to investors with seven major exits, including the sales of Ponant, the specialist luxury cruise operator and market leader in specialist polar cruises, to Artémis, the holding company of French entrepreneur Francois Pinault, Infront Sports & Media to Dalian Wanda Group, one of China’s leading conglomerates; and LGC, the international life sciences company, to KKR, and Quotient Clinical, the early-stage drug development services provider, to GHO Capital.

Our Capital Markets team also took advantage of buoyant conditions in the European

leveraged loans market to arrange debt totalling €3.4 billion, allowing us to balance better borrower-friendly terms with the need for prudent leverage in the growth companies that characterise Bridgepoint’s middle market activities. It also meant that our investments continue to enjoy meaningful liquidity, headroom and flexibility as they grow.

Finally, at the end of 2015, we also transferred interests in a number of the residual assets in a mature fund, Bridgepoint Europe III, to a global institutional investor. The transaction will provide over €300 million of liquidity to the Fund when it completes in early 2016.


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capital returned

“ In 2015 Bridgepoint investments returned over €1.8 billion of capital to investors with seven major exits.”

€2.0bn2014

€1.8bn2015

€1.2bn2013

€892m2012

Patrick Fox partner, operational support group

Marc Zügel partner, Head of investment in germany

Chris Busby partner, Head of investment in the uK

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People and talent During the year Bridgepoint welcomed 14 new team members across Europe, including a new partner to our Paris office, Denis Villafranca, and another in Madrid, Héctor Pérez. The strength and depth of our team has always been a distinguishing characteristic of Bridgepoint as a business. Yet we have always recognised that new individuals bring different important perspectives, especially at the beginning of the investment of a new fund. Our ability to continue to develop the talent of our own longstanding team members as well as attract new ones therefore remains critical to our success. If we are to continue to improve, we must evolve.

On a more personal note, I want to pay tribute to a group of colleagues who in 2015 independently undertook to fundraise for Myeloma UK, a cancer charity, in memory of a colleague, Jan Hester, who sadly passed away in 2014. A team of 17 colleagues set out to climb the three largest peaks in the UK in 24 hours which they achieved in time. They raised over £31,000 which the Bridgepoint Charitable Trust then matched.

It’s heartening in these times to see the spirit of cooperation and kindness that people display. Everyone at Bridgepoint was especially proud that people they work with every day undertook such a difficult challenge for a such a worthy cause.

2016: looking aheadAs we enter 2016 the volatility that characterised 2015 will continue for some time to come. Perhaps paradoxically, volatility has already created interesting investment opportunities albeit that a targeted approach to investment has to be maintained.

That is why the priorities for our Firm in 2016 are very clear. First, we will continue to be disciplined in our pricing and make investments borne of intelligent judgement. This not only means exploiting our attractive position in Europe’s middle market but also buying well with proper regard to risk and reward. It also extends to working to create value in our investments by focusing on revenue growth, operational improvement and accretive add-on acquisitions.

Second, we aim to continue to return meaningful amounts of


“ Our ability to continue to develop the talent of our own longstanding team members as well as attract new ones therefore remains critical to our success.”

“ I want to pay tribute to a group of colleagues who in 2015 independently undertook to fundraise for Myeloma UK, a cancer charity, in memory of a colleague, Jan Hester, who sadly passed away at a young age in 2014.”

Charlotte Kitabgi senior Associate, paris

Guy Weldon partner and chief investment officer

Frédéric Pescatoripartner, Head of investment in France

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capital to our investors. Through our sector-based approach implemented locally across a pan-European platform, our funds have consistently generated strong capital returns to our investors throughout different economic cycles. Our aim therefore in 2016 is to continue this trend, with strong realisations as we take advantage of favourable markets for selling assets.

And third, as our lower middle market business Bridgepoint Development Capital moves towards making its last investment from its BDC II fund, as noted, we expect it to return to the market in 2016 to raise a larger successor fund for what remains a very attractive and active part of the private equity market in Europe.

I, and my fellow partners, are aware of the huge amount of work

and commitment that lies behind Bridgepoint’s results. Behind the achievements I have summarised here are a very dedicated group of people – the management teams and over 90,000 employees of the companies we back. I thank them for their contribution, dedication and hard work in 2015.

The ambition of our own Bridgepoint colleagues across Europe and in China has also been undiminished and I thank them too for their energy and commitment.

Finally, it’s encouraging to conclude this review by noting that 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.

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William Jackson Managing partner

“ 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.”

James Reynolds investment director, london

i n v e s t M e n t A n d s e c t o R e x p e R t i s ei n v e s t M e n t A n d s e c t o R e x p e R t i s e


consumer Media & technology

Manufacturing & industrials

HealthcareFinancial servicesBusiness services27% 25% 7% 9%17% 15%

Our aim is to invest in high-performing, well-managed businesses that have the potential to grow through expansion, operational transformation or via acquisition.

We focus on six core sectors: Business Services, Consumer, Financial Services, Healthcare, Manufacturing & Industrials and Media & Technology. Each sector team is organised on a pan-European basis, with teams working closely together across offices to build knowledge and

ensure proper understanding of the space as well as to identify new and add-on investments.

By exploiting this wealth of local knowledge and sector expertise in Europe, we are also able to identify and acquire businesses where significant value can be created under our ownership and where in turn businesses can exploit our reach and know-how to enhance their operational performance, growth prospects and market position.

Investment preferences We are attracted by opportunities in sectors and niches with strong underlying growth, typically ahead of the broader economy, segments where Europe has global competitive advantage or in businesses with high visibility of earnings and contracted income.

We are especially known for helping to create value through market consolidation – by identifying and arranging funding for add-on acquisitions by the platform businesses owned by Bridgepoint funds – or securing operational improvement to drive earnings growth. In 2015 Bridgepoint

portfolio businesses made 42 add-on acquisitions.

Our investment teams are able to call upon expertise from a range of specialists whose skills include operational expertise, debt finance structuring and procurement. In addition, Bridgepoint has a portfolio development office in Shanghai which accelerates the development of portfolio companies in China across areas such as market entry, procurement, establishing facilities, add-on acquisitions and joint ventures with local partners.

investment and sector expertise

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3 73 6specialist expertise to serve customers in a greater range of territories.

As with any sector, predicting precisely where growth will occur can be challenging. Nevertheless we believe key opportunities for growth include technology and IP enablement, businesses with exposure to emerging markets (where growth can create a skills gap and the business services industry can be less developed) and services to businesses that maximise the potential of scarce resources.

We categorise our sweet spots for investment into two discrete subsectors: professional services, and asset and facility services.

Within professional services, we focus on outsourcing and consulting (particularly tech-enablement and building ‘sticky’ relationships in order to retain revenue), education and training, and testing, inspection and certification. All three are typically high margin, high expertise businesses.

Within asset and facility services, we focus on property services, energy and industrial services and transport services, where good management

and strong market positions typically can make a decisive difference.

Our relative focus within these sub-sectors flexes to take account of prevailing trends. Beyond these areas we are also interested in opportunities that overlap other Bridgepoint investment areas such as media and technology, healthcare and financial services.

Putting all of this together gives us clear parameters within which to appraise opportunities, taking into account prevailing economic conditions, and the likelihood of future growth prospects. The result enables us to see beyond the short term and take a longer-term, more effective view.

As with all our other sector specialisms, our interest in this area comes primarily from its potential for growth. The importance of business services reflects the 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 cleaning or catering. So, for example, in the pensions sector a service company could take care of skilled but non-core activity like loss adjustment.

When selecting candidate companies for potential investment, we look for high-quality businesses with a clearly differentiated position and significant potential for value creation. We are particularly interested in opportunities for market consolidation (typically through a process of buy and build), businesses servicing high-growth end user segments, businesses with a high proportion of recurring revenues (often in the form of ongoing contracts rather than one-off fees) and businesses where technology plays a role in creating competitive advantage.

Another important part of a business’s appeal is global potential and the ability to serve an international client base. Here Bridgepoint can use its network to help businesses to diversify their geographic presence, enabling them to deploy their

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 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 high quality managers can be found who can bring impact quickly on the performance of a business.

Business services


s e c t o R e x p e R t i s e : B u s i n e s s s e R v i c e ss e c t o R e x p e R t i s e : B u s i n e s s s e R v i c e s

27%

Emma Watford Head of Business services sector

€1.7bnInvested in 15 companies in the European Business Services sector in the last 10 years

of our portfolio is currently invested in this sector

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Anaveo is a provider of electronic security solutions such as video surveillance, security access control and intrusion detection to small and medium sized businesses. It has a network of 11 agencies 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.

This investment is managed by Bridgepoint Development Capital.

Date acquired

2015Employees

270Original deal size

not disclosedRevenue

€43.7m

Location France

Directors Grégory Louis Fabrice Tisseur

Bridgepoint representatives Bertrand Demesse Olivier Nemsguern

Website www.anaveo.com

A-Katsastus is the leading vehicle inspection company in Northern Europe with 273 stations in Finland, Sweden, Poland, Estonia and Latvia. Its services include compulsory vehicle inspections, drivers’ examinations and vehicle insurance and registration services.

In 2015, the group continued its network expansion in Sweden and focused on developing new complementary business areas in Finland.

Date acquired

2006Employees

1,160Transaction size


€111m

Location Finland

Directors Kari Kivikoski Ilkka Rantasalo Terhi Vähähyyppä

Bridgepoint representatives Michael Davy Patrick Fox Mika Herold

Website www.a-katsastus.com


i n v e s t M e n t s i n t H e B u s i n e s s s e R v i c e s s e c t o R

Beck & Pollitzer is a leading engineering services business specialising in the installation/relocation of industrial plant/machinery and associated services.

The company has a blue chip client base across a wide range of sectors including automotive, canning, pharmaceutical and aerospace and, is growing on the back of strong end markets and an increasing propensity for customers to outsource these services, providing an opportunity for Beck & Pollitzer to expand both geographically and across new sectors and services.


Date acquired

2007Employees

700Transaction size

£55mRevenue

£72m


Directors Andrew Hodgson Janusz Lach Charles Matthews Romain Provoust Fraser Ruciman

Bridgepoint representatives Stephen Bonnard Mark Stroud

Website www.beck-pollitzer.com

Cambridge Education Group (CEG) is one of the largest international schools groups in Europe, providing pre-university education to more than 3,500 students in the UK originating from 80 countries.

CEG operates four divisions in three countries: ‘CATS’ a Junior and Senior High School network with campuses in Cambridge, Canterbury, London, and Boston in the US; ‘Foundation Campus’ programmes through partnerships with 20 universities in the UK, US and the Netherlands; the College of Visual & Performing Arts in Cambridge; and English as Foreign Language (EFL) schools in the UK and US, operating under the ‘Stafford House’ brand.

Date acquired

2013Employees


£185mRevenue

£110m


Directors Fergus Brownlee Hetal Shah Sir John Sunderland

Bridgepoint representatives Chris Bell Chris Busby

Website www.cambridge educationgroup.com


4 14 0



Inspired Thinking Group (ITG) is a technology-led marketing services business which serves the growing trend of decoupling the ‘creative’ from the ‘execution’ phase in marketing services and outsourcing the latter.

In 2015 it won contracts with brands such as Cath Kidston and Bourne Leisure and deepened existing relationships with notable clients such as M&S and Sainsbury’s. It further developed its in-house digital offering (ITG 360), and grew its presence in the USA, winning a large contract with Claire’s in the territory


Date acquired

2014Employees

350Transaction size

£28mRevenue

£68m


Directors Mark Lovett Stevie Spring Simon Ward

Bridgepoint representative Adrian Willetts

Website www.inspiredthinking group.com

Element Materials Technology is a global leader in materials and product qualification testing for the aerospace, oil & gas and transportation markets.

Acquired in 2015 it has it has 53 laboratories in Europe, the US and China, over 1,800 employees and 10,000 customers worldwide.

Date acquired

2016Employees



$291m


Directors Charles Noall Jo Wetz

Bridgepoint representatives Chris Busby Raoul Hughes

Website www.element.com

Foncia is the market leader in residential property management services in France, Belgium and Switzerland with additional operations in Germany.

It manages apartment buildings on behalf of all residents collectively and provides a lettings management service to owners of individual apartments. It also provides ancillary services including valuations and insurance/energy broking and real estate transaction services.

Date acquired

2011Employees



€695m

Location France

Directors Benoît Fournial Marc Frappier Bruno Keller Anne Lalou Jacques Lenormand Wilfried Piskula

Bridgepoint representatives Benoît Bassi Vincent-Gaël Baudet Frédéric Pescatori

Website www.foncia.fr


CTL Logistics is Poland’s largest private rail logistics company, and, one of the leading private rail operators in Europe with operations across Poland and the neighbouring countries. It provides tailor-made logistics solutions focusing on rail transportation, freight forwarding, siding management and waste management for a wide range of sectors from coal and coke, fuels and oil, to agricultural and consumer industries. It operates in some of the largest markets in Europe, including the strategically important East-West rail corridor.

Date acquired

2008Employees



€162m

Location Poland

Directors Jacek Bieczek Mariola Hola-Chwastek Michał Jóźwiak Jaroslaw Krol

Bridgepoint representatives Khai Tan Maciej Zuzałek

Website www.ctl.pl

4 34 2



LOC Group is an international provider of marine and engineering assurance services to the offshore oil & gas and shipping markets. It is a leading provider of marine warranty surveys required for the transport and installation of offshore capital equipment, and the market leader in marine casualty consultancy for shipping insurers in high-profile incident and dispute cases.

Established in 1979, it operates from over 30 offices located around the globe and employs 400 staff including master mariners, naval architects, and marine and structural engineers.


Date acquired

2013Employees

400Transaction size


£65m


Directors David Ballands Robin Bidwell Nadim Butt Edward Guest Andrew Squire

Bridgepoint representatives Mayank Kanga Kevin Reynolds

Website www.loc-group.com

TüvTurk is the monopoly provider of statutory vehicle inspections operating 208 stations across Turkey. The company has a 20 year monopoly concession until 2027 and has franchised its operations in 81 regions to 48 franchisees.

TüvTurk has received approval from the Ministry of Transport for the online sale of mandatory vehicle insurance (‘MVI’), commencing in 2016 which will add significant value add to the business.

Date acquired

2009Employees

871Transaction size

tRY347mRevenue

tRY120m

Location Turkey

Directors Husnu Akhan Matthias Rapp Klemens Schmiederer Erman Yerdelen

Bridgepoint representatives Martin Dunn Patrick Fox

Website www.tuvturk.com.tr

Leeds Bradford Airport (LBA) serves Yorkshire & Humberside, a region of 5.3 million inhabitants.

Since Bridgepoint’s acquisition LBA has consistently been one of the fastest growing airports in the UK. Following an £11m terminal upgrade in 2012, LBA has introduced a range of new routes and airlines including British Airways, Monarch and Thomson.

Date acquired

2007Employees

200Transaction size

£145mRevenue

£28.4m


Directors Paul French Tony Hallwood John Parkin Simon Whitby

Bridgepoint representatives Michael Davy Patrick Fox

Website www.leedsbradford airport.co.uk


KGH is the leading independent customs services provider in Europe with operations in 11 countries and over 14,000 customers.

In 2015, KGH won several important contracts with multinational clients on a pan-European basis, where the Company provides strong differentiation versus local competition. The company also continued to invest to build the next generation’s software platform, which is now being piloted and will be launched commercially in 2016.


Date acquired

2013Employees

700Transaction size


seK 581m

Location Sweden

Directors Vidar Gundersen Michael Olsson Magnus Sjöqvist

Bridgepoint representatives Johan Dahlfors Johan Gustafsson

Website www.kghcustoms.com

4 54 4of convenience or efficiency).

Identifying promising growth areas by theme or driver contrasts with the more usual sub-segment approach that lacks the flexibility to accommodate outlier or challenger brands. Concentrating on deeper dynamics like this enables us to look closer and see further to identify the most promising opportunities in the consumer space and the qualities of each opportunity that will deliver significant growth.

Equally important when evaluating an opportunity is recognising the importance to consumers of local knowledge. In some areas the UK or France will have evolved in slightly different but important ways compared to Turkey or Poland – and vice versa. Having a pan-European team and significant consumer input from our Shanghai team helps us appreciate the distinctions and needs of different markets.

We have been investing in consumer businesses for over 30 years, with high-profile transactions like Pets at Home, Alain Afflelou, Nordic Cinema Group and Pret A Manger that

resonate with consumers and of course other management teams. Our deep track record helps us better understand new opportunities and underpins our thematic approach to identifying opportunities for growth. Since it was established, Bridgepoint has invested €3.6bn in over 100 consumer businesses – a long association that enables us to look beyond the cyclical nature of the sector and take a longer, more informed view.

We segment consumer into four primary subsectors where our knowledge and experience can make a decisive difference: retail, leisure, FMCG and consumer services. We look for companies with clear opportunities for growth, strong brand 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.

If those are the characteristics we look for in potential investment opportunities, where do we think growth will occur in the consumer sector? The answer can be found in our approach to this sector: instead of analysing the space by the specific area of consumer activity (e.g. speciality retail or cinemas), we prefer to identify promising growth areas by theme or driver. This has the flexibility to accommodate advanced business models that do not fit into standard categories. The key drivers we look for include demographics (for example any opportunity that taps into population changes and trends), value versus luxury (particularly relevant in the retail subsector), and experiential (for example occasions or experiences that offer consumers something special). Equally important are the themes of self-improvement (for example health, wellness or education-related) and consumer service (typically in terms

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 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 transactions in europe.


consumer

s e c t o R e x p e R t i s e : c o n s u M e Rs e c t o R e x p e R t i s e : c o n s u M e R

25%

Jason McGibbon Head of consumer sector

€1.9bnInvested in 14 companies in Consumer sector in the last 10 years


4 74 6

Dr Gerard is one of the largest producers of branded and co-branded label biscuits in Poland, selling leading brands and high-quality products through all retail distribution channels.

Established in 1993, the company operates from three sites across Poland where it employs over 1,000 people. It has transformed itself from a local single-channel producer into a multi-channel operation with increasing CEE and international presence.

In 2015, Dr Gerard continued to build its geographical footprint by expanding into Romania with another two subsidiaries opening at the beginning of 2016 in Hungary and the Czech Republic. The recent acquisition of Artur, the Polish biscuit producer, has also further strengthened its position in the marketplace.

Date acquired

2013Employees



€86m

Location Poland

Directors Jerzy Glinka Jarosław Zawadzki

Bridgepoint representatives Jason McGibbon Khai Tan Maciej Zużałek

Website www.drgerard.eu


i n v e s t M e n t s i n t H e c o n s u M e R s e c t o R

Azzurri is a leading Italian-themed casual dining group in the UK, operating 250 restaurants under two well-established casual dining brands, ASK Italian and Zizzi, as well as Coco di Mama, a fast-growing Italian-themed quick service food and coffee concept. ASK Italian and Zizzi focus on authentic Italian cuisine with differentiated menu styles and both brands have a long-standing reputation for quality and value for money.

In 2015 Azzurri continued to grow its footprint with new restaurant openings across both ASK Italian and Zizzi brands and the acquisition of Coco di Mama, a London-based quick-service food brand, serving all-day Italian cuisine, with an expertise in pasta and coffee.

Date acquired

2015Employees


£250mRevenue

£218m


Directors Steve Holmes Jim Pickworth Kieran Pitcher Harvey Smyth

Bridgepoint representatives Michael Black Jason McGibbon

Website www.askitalian.co.uk www.zizzi.co.uk www.cocodimama.co.uk

Casino France Operations (CFO) (formerly a sister company of the JOA Groupe) is an independent player in the French gaming sector that operates two casinos under a franchise agreement with JOA Groupe. Following the restructuring of JOA acquired in 2005, Bridgepoint and Loto Quebec retained full control and ownership of CFO.

CFO’s first permanent casino began operations at the beginning of December 2014, with a second one, in a temporary site in 2015. The permanent location was opened at the beginning of January 2016.

Date acquired

2005Employees

158Transaction size


€10m

Location France

Directors Claude Poisson Alain de Pouzihac

Bridgepoint representative Benoît Bassi

Website www.joa-casino.com

Fat Face is a UK retailer of modern, casual clothes with an ‘outdoor lifestyle’ theme, operating a multi-channel model of over 200 directly owned stores with a rapidly growing e-commerce business and an active wholesale operation. A total of 90 stores have been added under Bridgepoint’s ownership.

Date acquired

2007Employees


£360mRevenue

£205m


Directors Will Crumbie Simon Greene Simon Pickering Stuart Rose Mark Seagar Anthony Thompson

Bridgepoint representatives Benoît Alteirac Guy Weldon

Website www.fatface.com


4 94 8



Histoire d’Or (part of Group Thom) is the largest jewellery retailer in France. It was acquired simultaneously with the market No. 2, Marc Orian, and both were merged securing significant synergies.

The majority of the Marc Orian estate was converted to the Histoire d’Or format. Today the combined group operates over 580 stores under three banners (Histoire d’Or, Marc Orian and Trésor) including a small and expanding network in Belgium and Italy.

In 2015, Histoire d’Or continued to expand its network by opening 33 stores.

Date acquired

2010Employees


€599mRevenue

€378m

Location FranceDirectors Loïc Armand Eric Belmonte Bruno Candelier Jordi Constans Jacques Pancrazi Thomas Simon Maurice TchenioBridgepoint representatives Benoît Bassi Frédéric PescatoriWebsite www.histoiredor.com

Le premier bijoutier de France

Limoni is the market leader in the Italian perfumery retail sector with a network of c.400 stores. It also provides a wholesale service to smaller independent Italian perfumeries.

Date acquired

2006Employees



€222m

Location Italy

Directors Enrico Ceccato Maurizio De Costanzo Paolo Frigati Marco Giorgetta Fabio Pampani Roberto Pisa

Bridgepoint representatives Benoît Bassi Raoul Hughes

Website www.limoni.com

Hobbycraft is the leading arts, crafts and hobbies specialist retailer in the UK with 83 superstores. Under Bridgepoint ownership and with a new management team in place, it has undergone an extensive operational improvement programme to support growth within the existing estate, further store roll-out and multi-channel development. The business has recently launched a new, smaller store format.

Date acquired

2010Employees



£151m


Directors Lawrence Christensen Dominic Jordan Catriona Marshall Matthew Moore Archie Norman Katherine Paterson Katharine Poulter

Bridgepoint representatives Emma Watford Guy Weldon

Website www.hobbycraft.co.uk


The Nordic Cinema Group (‘NCG’) is the leading cinema operator in the Nordic region with 70 cinemas, 472 screens and a 44% share of total Nordic box office revenues. NCG’s cinemas are well-invested, modern and comfortable with the latest technology. Sites are typically focused around large and mid-sized cities, located in shopping malls, transport hubs 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.

Date acquired

2015Employees


seK 4.7bnRevenue

seK 2.9bn

Location Sweden

Directors Anders Ehrling Erik Haegerstrand Torsten Larsson Simon Wright

Bridgepoint representatives Christopher Bley Mika Herold Mikael Lövgren

Website www.nordiccinema group.com

5 15 0



The Dining Club Group is the UK’s largest discount diners’ club with over four million members. It works with some of the country’s most popular restaurant chains, as well as over 6,000 independent restaurants. It operates two branded membership cards, tastecard and the Gourmet Society, and sells memberships through three channels: direct to consumers, to consumers via company employee benefit schemes, and to corporates who offer their customers memberships as part of a bundled offering, such as a premium bank account.


Date acquired

2015Employees

102Transaction size


£17.5m


Directors Annette Court Dave Cuckney Ben Eaton Sam Shaw Matt Turner

Bridgepoint representatives Matt Legg 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 equipment. The company has an attractive and loyal customer base of 1.5 million active consumers and it receives 150,000 orders every week via its 13 primary domains. The business delivers to over 70 countries worldwide with 50% of its sales being outside the UK.

In 2015 the company consolidated and relocated its distribution facilities to a purpose-built 300k sqft site close to key communications routes in Wolverhampton. Having established market leadership in the UK the business is acting to replicate its success in other attractive markets, particularly Europe.

Date acquired

2011Employees

478Transaction size

£180mRevenue

£193m


Directors Stefan Barden Giles David Brian McBride

Bridgepoint representatives Patrick Fox Nick Heslop Xavier Robert

Website www.wiggle.co.uk

Pret A Manger is the UK’s leading retailer of high-quality natural, ready to eat sandwiches, salads and drinks. Founded in 1986, it has over 390 shops in the UK, US, Hong Kong, France and China and employs over 10,000 people. In 2015, Pret’s new franchise model saw the opening of two shops in France located at the Paris Gare du Nord and Nice Airport.

Date acquired

2008Employees


£364mRevenue

£671m


Directors Sinclair Beecham Laurence Billett Nick Candler Anders Dahlvig Clive Schlee

Bridgepoint representatives Vince Gwilliam William Jackson

Website www.pret.com

Rodenstock is a leading manufacturer of both optical lenses and eyewear, the only company worldwide able to offer both products. It is the No 3 and No 4 respectively in Europe and the world within the optical lenses market, enjoying strong brand recognition and a high reputation for technology leadership in its field among opticians. In 2015, Rodenstock continued to drive top and bottom line growth as a result of increasing business with independent opticians and optical chains in its core European markets. It also strengthened its eyewear business by launching two new licence brands (Bogner and Jil Sander) and made significant investments in launching new products in its lens portfolio.

Date acquired

2007Employees



€417m

Location Germany

Directors Oliver Kastalio Michael Kleer Peter Körfer-Schün Sven Schirmer Robert Schlitt

Bridgepoint representatives Christoph Braks Ian Dugan

Website www.rodenstock.com


5 35 2incentivising key individuals become increasingly important. We work well with business owners, management teams and importantly, with regulatory bodies worldwide.

Looking ahead, we expect to see regulation to be an ever more important driver of opportunity. Increasing regulatory and compliance standards worldwide will drive many industries towards consolidation and polarisation to smaller numbers of world-leading players.

We also expect to see technology continue to drive growth, from improving internal efficiency for financial institutions to increasing choice and service levels for consumers. The result will increase competitiveness and create the right conditions for success.

On the service side we expect to see growth coming from increased use of outsourcing and business process re-engineering designed to improve efficiency and profitability.

On the product side, insurance continues to be of real interest to us. We also expect initiatives that reflect the megatrends described above to do well. Above all we will continue to look for

investment opportunities where we can help a company become market leader, putting them in turn on the radar for future acquisition.

In terms of our track record, by focusing on a handful of high-growth areas we have achieved realised returns in excess of three times and what we have learned is enabling us to pinpoint repeatable business models, creating the conditions for continued future success.

The financial services sector is of course an integral part of Europe’s economic and social fabric. Successful service providers must therefore take account of emerging ‘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.

At Bridgepoint we understand these trends, enabling us to take full advantage of the opportunities they offer. Our size and experience means we can bring considerable resources to bear, not just in terms of capital and people but also in terms of vision and understanding.

As to the specific characteristics we look for in investment opportunities, an innovative approach to technology is always highly attractive. This influences everything from distribution and how a financial product is brought to market, to increasing customer satisfaction and stealing a march over competitors.

We also look for companies with experienced, motivated staff. Many service businesses are essentially people businesses, so the quality of their people is paramount. In a competitive market, innovative approaches to finding, retaining and

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 services), asset and wealth management (both institutional and retail), specialty finance and fintech, all within a european context. Financial institutions themselves, such as retail or commercial banks, are not our prime area of focus.

Financial services


s e c t o R e x p e R t i s e : F i n A n c i A l s e R v i c e ss e c t o R e x p e R t i s e : F i n A n c i A l s e R v i c e s

7%

William Paul Head of Financial services sector

€500mInvested in four companies in the European Financial Services sector in the last 10 years


5 55 4


i n v e s t M e n t s i n t H e F i n A n c i A l s e R v i c e s s e c t o Ri n v e s t M e n t s i n t H e F i n A n c i A l s e R v i c e s s e c t o R

1st Credit is a UK debt purchasing agency that acquires debt portfolios from banks, utility suppliers and telecoms companies. Having raised £120m in 2013, it was able to acquire £31m of debt portfolios and in 2014 secure an additional £40m of purchases.

In 2015, the company has continued to broaden its debt purchasing customer base whilst ensuring it remains focused on the tight compliance regulations within its sector base.

Appleby Fiduciary & Administration (‘AFB’) provides Trust & Corporate Services to a wide range of clients in nine jurisdictions around the world. Clients range from large global corporations from all sectors, to high net worth individuals, families and fund managers, including private equity, hedge funds, real estate and other alternative fund structures.

AFB has three key business lines administering over 10,000 structures for almost 6,000 clients: Corporate Administration which provides incorporation and domiciliation services, Trust Administration which establishes trust structures and then provides day-to-day administration services, and Fund Services, which assists in the launch, incorporation and administration of funds.

Date acquired

2004Employees

174Transaction size

£67mRevenue

£33m

Date acquired

2015Employees

350Transaction size


$84.6m


Directors Simon Dighton Charles Holland Bruce McLaren Eddie Nott Leith Robertson

Bridgepoint representatives Patrick Fox Stephen Green

Website www.1stcredit.com


Directors Farah Ballands Scott Carter Roger Siddle

Bridgepoint representatives William Paul Emma Watford

Website www.applebyglobal.com

Moneycorp is a UK headquartered specialist foreign exchange business with operations in the UK, Ireland, France, Spain and the US. It operates three main businesses – International Payments, Retail and Wholesale.

International Payments serves small and medium-sized businesses and individuals looking to make international foreign exchange transfers while the business’ Retail division operates from bureaux de change and ATMs at Gatwick, Stansted, three other UK airports and central London locations. The Wholesale division supplies banknotes to banks and financial institutions worldwide.

Date acquired

2014Employees

752Transaction size

£212mRevenue

£130m


Directors Colin Buchan Nick Haslehurst Mark Horgan Paul Lever

Bridgepoint representatives Stephen Green Rob Moores

Website www.moneycorp.com

5 75 6

research and many other functions in order to increase efficiency and cost base flexibility. This too presents opportunities for a middle market private equity investor like Bridgepoint. With certain markets worth $20 billion annually, the opportunity associated with outsourcing alone is therefore highly attractive. Similarly, the opportunity to help a business with proven pharmaceutical products take their domestic offer to an international market plays to our core strengths.

In the third of our specialist areas – medtech – innovation is rapidly changing the way procedures are conducted. One of the most exciting developments in this area is the use of robotic equipment in surgical procedures, typically in the form of enabling remote surgical input from a consultant or minimising invasive surgery.

We are focused on finding opportunities in attractive long-term growth market niches where we can help support businesses to accelerate their growth. That might be through investment in new facilities, taking a new product going into an untapped market, or offering currently constrained

services which people are willing to pay to access. This is certainly reflected in our experience in private pay nursing homes and private dentistry.

Overarching our three areas of interest in the sector is quality. Given the highly regulated nature of the market and the obvious importance nationally and individually of healthcare, quality is fundamental. And almost as important is the ability to articulate a particular offer in an attractive, appropriate way and explain why a user should buy a particular product or service. Solutions take many forms, but already we are starting to see the arrival in the healthcare sector of quality reviews that introduce a patient-driven scoring system for healthcare providers.

Bridgepoint has completed over 55 investments in the healthcare space, achieving strong returns for our investors. As a result, it has a substantial track record of building efficient, effective and quality-driven businesses, reflecting both the importance of healthcare as a sector and its attractiveness as an investment opportunity.

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 in the sector, typically characterised by a growing ‘market’ mentality amongst patients taking a proactive approach to their personal healthcare. Innovation too in healthcare is also driving interesting opportunities for investment.

At the micro level, increasing demand for high quality but cost effective care within healthcare systems that are largely publicly funded is creating attractive 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, pharma and medtech. These offer a number of highly attractive niches where leading businesses have achieved attractive growth rates.

In the services space, pressure on the delivery of national economic targets is creating more and more outsourcing opportunities as providers look for ever greater efficiency in a fragmented and highly regulated market. Consolidation and its attendant benefits of improved operating efficiency and enhanced clinical quality through shared best practice, is also important here. Consolidation, for example, has underpinned the developments in the pharmacy and care home sectors for over 20 years; we believe there are still attractive, unconsolidated areas of the healthcare market across Europe that would benefit from the same approach.

In the pharma subsector we are seeing a fundamental transformation of large pharmaceutical businesses, with the outsourcing of manufacturing, clinical

Health is a huge market where Bridgepoint focuses on two areas particularly suited to middle market private equity investment – regulated healthcare and social care.


Healthcare

s e c t o R e x p e R t i s e : H e A l t H c A R es e c t o R e x p e R t i s e : H e A l t H c A R e

Jamie Wyatt Head of Healthcare sector

17% €1.4bnInvested in 10 companies in the European Healthcare sector in the last 10 years


5 95 8


i n v e s t M e n t s i n t H e H e A l t H c A R e s e c t o Ri n v e s t M e n t s i n t H e H e A l t H c A R e s e c t o R

Balt is a leading French medtech business in the fast-growing neurovascular market.

Founded in 1977, it specialises in the design, manufacture and distribution of neurovascular devices and products that treat complex, life-threatening conditions of the brain, specifically strokes, aneurysms and arteriovenous malformations (AVMs). The company employs 90 people at its facilities in Montmorency (France) and Gland (Switzerland).

Balt serves French hospitals directly and has an international network of over 100 distributors worldwide.

Care UK is the leading private provider of health and social care services to the public and private sectors. It provides residential social care and primary/secondary healthcare services. Since investment, Care UK has increased the number of care homes from 59 to 113 and nearly doubled the number of residents to c.6,000.

Date acquired

2015Employees

90Transaction size


€40m

Date acquired

2010Employees


£414mRevenue

£687m

Location France

Directors Hervé Novelli Nicolas Plowiecki Marina Plowiecki Stéphane Regnault Oern Stuge

Bridgepoint representatives Vincent-Gaël Baudet Frédéric Pescatori

Website www.balt.fr


Directors Mike Parish Phil Whitecross

Bridgepoint representatives Raoul Hughes Rob Moores

Website www.careuk.com

Compagnie Stéphanoise de Santé is the principal independent operator of clinics in the Rhône-Alpes region of France. It was founded in 2005 through the combination of three clinics and the subsequent addition of further facilities in the Rhône-Alpes, Aquitaine and Auvergne regions. It now operates from eight sites, mainly polyclinics that offer a broad range of specialist medicine and surgery.


Date acquired

2011Employees



€120m

Location France

Directors Bruno Limonne Jean Rigondet Jean François Sautereau

Bridgepoint representatives Bertrand Demesse Aymeric Marraud des Grottes Olivier Nemsguern

Website www.groupec2s.fr

Diaverum is the third largest corporate provider of dialysis treatment in the world and the second largest independent dialysis service provider in Europe. It treats 27,600 patients, through 329 clinics, located in 19 countries across Europe, South America, Australia, the Middle East and Asia.

In 2015, Diaverum continued to build its geographical footprint by expanding into Kazakhstan, establishing an office in China, and strengthening its position in Romania through a strategic add-on acquisition.

Date acquired

2007Employees



€583m

Location Sweden

Directors Dag Andersson Björn Brixer Annette Kumlien Alan Milburn

Bridgepoint representatives Martin Dunn Héctor Pérez

Website www.diaverum.com

Médipôle Partenaires (created by the merger of Médipôle with Médi-Partenaires in June 2014) is the second largest independent private hospital group in France. The group operates 38 clinics and 6,600 beds in France’s most demographically attractive regions and covers the patient’s full ‘care pathway’ including high-margin pre and post-operative care.

Date acquired

2011Employees



€865m

Location France

Directors Benoît Fournial Marcel Hermann

Bridgepoint representatives Benoît Bassi Vincent-Gaël Baudet William Paul Fabrice Turcq

Website www.medi-partenaires.com

6 16 0

Phlexglobal is a specialist provider of technology-enabled document management solutions and other support services to the global pharmaceutical market. It is a recognised leader in technology-led solutions for the management of Trial Master Files (TMF), a key component of clinical trials.

It specialises in software and services used by global pharmaceutical, biotech sponsors and clinical research organisations to manage their TMFs clinical trial records.


Date acquired

2014Employees

219Transaction size

£42mRevenue

£20.1m

Locations United Kingdom/ United States

Directors Stella Donoghue Steve Kent Peter McNaney Rick Riegel Karen Roy

Bridgepoint representatives Matt Legg Kevin Reynolds

Website www.phlexglobal.com


i n v e s t M e n t s i n t H e H e A l t H c A R e s e c t o Ri n v e s t M e n t s i n t H e H e A l t H c A R e s e c t o R

Oasis is the leading branded provider of public and private dentistry in the UK and Ireland. Acquired in 2013 with c.200 practices, the business has grown through acquisition to over 350 practices.In 2014 the company completed the £30m acquisition of Smiles, a chain of 77 largely private-pay focused practices.

In 2015 Oasis added 34 new practices in the UK, as well as three greenfield sites.

Date acquired

2013Employees


£183mRevenue

£275m


Directors Justin Ash Bill Colvin Jordi Gonzalez David Leatherbarrow Julian Perry Stuart Rose

Bridgepoint representatives Patrick Fox Jamie Wyatt

Website www.oasisdentalcare.com

6 36 2

Manufacturing & industrials


s e c t o R e x p e R t i s e : M A n u F A c t u R i n g & i n d u s t R i A l s

9%

opportunity. In Europe there are over 2,500 manufacturing and industrial companies in our size range, a rich seam we are able to work through to identify promising investment opportunities. In addition, Europe enjoys market leadership in the form of unique manufacturing companies that produce niche products with ready demand around the world.

Against this background Bridgepoint focuses on four key segments within the sector that we believe will experience significant growth, reflecting the global megatrends mentioned above: industrial products, aerospace, energy and power and chemicals, with secondary interest in building products and automotive.

We look in particular for international companies with real points of differentiation, high recurring income and strong pricing power. As a result, almost all the companies in this sector we have acquired in recent years have demonstrated strong earnings margins. We are also attracted to new products and technologies with a clear reason to exist, as well as hybrid product/service offerings where a product is recontextualised as a service.

Bridgepoint has been investing in industrial and manufacturing businesses for 30 years and has built up a wealth of knowledge and experience that we continue to put to good use today. We have a longstanding track record in this space and have invested €2 billion of equity in 25 companies and achieved strong returns. In the last eight years we have acquired six businesses, making Bridgepoint one of the most active PE funds in Europe in this 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.

Similarly, the global middle classes are growing at 18% annually, with a corresponding increase in demand for products and services originating in the manufacturing and industrial sector. Increased global energy demand will make the need for energy efficient products more important than ever, while robot usage is increasing at between 5% and 8% annually, with key areas like automotive robotics growing at over 10%. Understanding and exploiting these megatrends is at the heart of our approach to investment in this sector.

Interestingly, the sheer importance of Manufacturing & Industrials makes it a particularly robust sector, with many companies able to take market cycles in their stride. The type of companies we are interested in tend to have well-developed, well tested business models.

Another reason for our interest is the scale of

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 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 always be high profile, but it is unquestionably of high importance.

s e c t o R e x p e R t i s e : M A n u F A c t u R i n g & i n d u s t R i A l s

Chris Bell Head of Manufacturing & industrials sector


€1bnInvested in seven companies in the European Manufacturing & Industrials sector in the last 10 years

6 56 4


i n v e s t M e n t s i n t H e M A n u F A c t u R i n g & i n d u s t R i A l s s e c t o Ri n v e s t M e n t s i n t H e M A n u F A c t u R i n g & i n d u s t R i A l s s e c t o R

AHT Cooling Systems is the leading manufacturer of commercial ‘plug-in’ refrigeration equipment for some of the largest and fastest growing food retailers and food/beverage producers in the world.

In 2015, the company, which is known for its lower cost, energy efficiency, flexibility and speed of delivery, continued in rolling out its new product range – plug-in wall-mounted cabinets – across Europe. It also made significant investments in new product development that will strengthen its reputation as an innovation leader for plug-in commercial refrigeration cabinets. AHT continued to build its geographical footprint by opening offices in the Nordics and Russia and identified interesting overseas growth opportunities.

Date acquired

2013Employees



€365m

Location Austria

Director Hans Aage Joergensen

Bridgepoint representatives Michael Davy Marc Zügel

Website www.aht.at/en

The Flexitallic Group is the market leader in customised high-performance mission-critical sealing solutions and products to the global oil, gas and power generation industries.

Headquartered in France, the company has eight production sites in the US, Canada, UK, France, Middle East and China, with almost three-quarters of its revenues sourced from North America. It serves a long-standing client base of over 900 clients thanks to a technical sales force who set industry-leading standards of service and reliability.

Date acquired

2013Employees


€450mRevenue

$200m

Location France / Global

Directors Gerry Maters Jon Stokes

Bridgepoint representatives Michael Davy Ian Dugan Frédéric Pescatori

Website www.flexitallicgroup.com

DMC Power sells permanent couplings and associated tooling to the North American electricity transmission and distribution industry for use primarily in high voltage electricity sub-stations. Its technology is unique in its industry and is successfully displacing welded and bolted connection techniques, which it materially outperforms.

In 2015 the company was granted patents for its new transmission live and grounding connectors.

DMC Power was part of another Bridgepoint investment, Permaswage, the market leader in the manufacture of permanent and separable couplings for aerospace companies, before the latter was sold to PCC, with Bridgepoint retaining its stake in DMC Power.

Date acquired

2007Employees

125Transaction size


$24.7m

Location United States

Directors Eben Kane Tony Ward

Bridgepoint representative Michael Davy

Website www.dmcpower.com

6 76 6

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 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 hand, and software and the internet on the other is largely irrelevant.

s e c t o R e x p e R t i s e : M e d i A & t e c H n o l o g Ys e c t o R e x p e R t i s e : M e d i A & t e c H n o l o g Y

in the sense that they are not closely tied to the laws or practices of a particular country. The more globally relevant a product or service is, the better.

Another important characteristic we look for is a business model based on subscription rather than advertising. Subscription churn rates tend to be low, so income streams are steady and predictable. Relying on advertising alone is far more challenging and unpredictable.

Companies that meet these criteria can deliver impressive results, often, as is the case with successful software businesses, achieving high double-digit profit on sales. Their products tend also to be “sticky”, in the sense that changing to a competitor’s offering involves major upheaval, encouraging companies to stick with what they have.

Looking ahead, we foresee opportunity driven by one of the key characteristics of this sector: the sheer pace of change. In many subsectors business models are far from established, so we closely monitor the latest developments in order to identify interesting opportunities the moment they emerge.

It is an approach that has worked, enabling us to use our knowledge and experience to profitable use. By shifting our focus from traditional media to the world of technology, we have created the right conditions for the companies we back to succeed long into the future.

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 ‘internet of things’ promises to open up a whole new world of opportunity.

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 our areas of interest. In many cases it makes more sense to think of technology as a horizontal, cross-sector function rather than a discrete vertical like Consumer or Healthcare. Technology’s all-pervasiveness means it is essential we understand precisely how it can enhance how we work, knowledge we can then use to inform our investment decision-making.

In terms of actual investments, the media & technology companies we are interested in all share certain characteristics. Clearly there has to be a market for whatever they are selling. We also look for companies with the right team and resources in place to implement their strategy. In a sector where hype can sometimes outstrip performance, their ability to actually deliver is crucial.

At the same time we look for companies whose products have the widest possible market,

15%

Xavier Robert Head of Media & technology sector

€1.5bnInvested in 10 companies in the European Media & Technology sector in the last 10 years


6 96 8


i n v e s t M e n t s i n t H e M e d i A & t e c H n o l o g Y s e c t o Ri n v e s t M e n t s i n t H e M e d i A & t e c H n o l o g Y s e c t o R

BigHand is the largest provider of productivity-enhancing software for busy time-focused professionals in the legal, healthcare and professional services markets.

It currently supports over 250,000 professionals globally across 1,950 customer organisations with offices in London, Chicago, Sydney, Toronto and Eindhoven. The company recently launched BigHand V5, an upgrade and expansion of its software product suite. This new innovation means BigHand is now able to offer a range of products across ‘speech, delegation’, ‘process’ and ‘improvement’ themes to their growing and international customer base.


Date acquired

2012Employees

146Transaction size

£48mRevenue

£25m


Directors Jon Ardron Ian Churchill Graham Gilbert Sam Toulson

Bridgepoint representatives Alan Payne Mark Stroud

Website www.bighand.com

Dorna SBK is an international sports management business that holds the exclusive global rights to organise the FIM Road Racing World Championship (MotoGP) until 2041, and, the FIM World Superbike Championship (SBK) until 2036. The company generates its revenues from race circuit fees, TV broadcast contracts, sponsorship and advertising as well as corporate hospitality services.

Date acquired

2013Employees

316Transaction size


€309m

Location Spain

Directors Enrique Aldama Carmelo Ezpeleta

Bridgepoint representatives William Jackson José Maria Maldonado William Paul

Website www.dorna.com

eFront is the leading software provider of financial solutions for managing alternative investments. It provides end-to-end solutions dedicated to the financial services industry, specialising in enterprise risk management and alternative investments.

Its solutions serve more than 800 customers and over 100,000 users in 48 countries serviced by 21 offices worldwide, including many of the largest blue chip private equity investors and managers worldwide, typically those with private equity investments greater than $1bn.

2015 saw eFront attain a double digit growth rate, adding more than 100 new clients in the year.

Date acquired

2015Employees

633Transaction size

€300mRevenue

$102.7m

Location France

Director Olivier Dellenbach

Bridgepoint representatives Martin Dunn David Nicault Xavier Robert

Website www.efront.com

7 17 0


i n v e s t M e n t s i n t H e M e d i A & t e c H n o l o g Y s e c t o Ri n v e s t M e n t s i n t H e M e d i A & t e c H n o l o g Y s e c t o R

Trustly was founded in 2008 and provides a proprietary online banking e-payment solution which is designed to make online payments more convenient, faster, simpler and safer. It currently handles around 1.5m payments per month with the business targeting online merchants who value safety, high sales conversion, consumer convenience and those who are at the forefront of adopting new technology. The company is focused on merchants with large volumes of pay-ins/pay-outs who value real-time processing and account reconciliation functionality.

During 2015, Trustly has continued to broaden its network of integrated merchants and banks and has expanded its geographical coverage with 21 new European markets, for a total of 29 countries.

The investment is managed by Bridgepoint Development Capital.

Date acquired

2014Employees

88Transaction size


seK 193m

Location Sweden

Directors Andreas Bernstrom Lukas Gratte Carl Wilsson

Bridgepoint representatives Johan Dahlfors Magnus Gottås

Website www.trustly.com

MVF is a technology-enabled provider of international online lead generation services to a variety of industry sectors including various B2B markets, market research, relocations, education, clean tech and healthcare.

It specialises in online customer acquisition and lead generation using proprietary technology, data-driven analytics and in-house digital marketing expertise to provide some of the world’s leading brands with high volumes of potential new customers that generate a strong return on investment.


Date acquired

2015Employees

310Transaction size


£36m


Directors Jules Hopkinson Tom Morgan Peter Rigby Titus Sharpe Michael Teixeira

Bridgepoint representatives Michael Black Robin Lawson

Website www.mvfglobal.com

In December 2013, Groupe Moniteur merged with Infopro, creating the number one professional information group in France. The group provides quality and value added content for various sectors such as automotive, construction and local authorities. Today it is one of the most advanced information groups following its migration from print to digital media.

In 2015, Infopro completed the acquisition of EBP Group, a provider of trade publications and data to the construction industry headquartered in Belgium. This will enable the group to expand its international footprint and offers significant cost savings.

Infinitas Learning is one of Europe’s leading educational content companies, providing a range of innovative and engaging products and services for teaching and learning.

Its principal activities are in the Netherlands, Sweden and Belgium where it has market-leading positions, providing content and e-learning materials for primary schools, secondary schools and further education colleges. Products span interactive software, online learning, e-books, audio books and textbooks. It also has an active product development programme to meet the needs of new and developing curricula.

Date acquired

2006Employees



€291m

Date acquired

2007Employees

625Transaction size

€774mRevenue

€217m

Location France

Directors Henry Capelle Christophe Czajka Thomas de Villeneuve Eddie Misrahi

Bridgepoint representative Benoit Bassi

Website www.infopro-digital.com

Location The Netherlands

Directors Clive Hay-Smith Natascha van Nieuwenburg

Bridgepoint representative Daniel Wagener

Website www.infinitaslearning.com

7 37 2

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

Histoire d’Or consumer 2010 €599m €378m Be iv

Hobbycraft consumer 2010 not disclosed £151m Be iv

Infinitas Learning Media & technology 2007 €774m €217m Be iii

Infopro Media & technology 2006 not disclosed €291m Be iii

Inspired Thinking Group* Business services 2014 £28m £68m Bdc ii

KGH Customs Services* Business services 2013 not disclosed seK 581m Bdc i/ii

Leeds Bradford Airport Business services 2007 £145m £28.4m Be iii

Limoni consumer 2006 not disclosed €222m Be iii

LOC Group* Business services 2013 not disclosed £65m Bdc ii

Médipôle Partenaires Healthcare 2011 not disclosed €865m Be iv

Moneycorp Financial services 2014 £212m £130m Be iv

MVF* Media & technology 2015 not disclosed £36m Bdc ii

Nordic Cinema Group consumer 2015 seK 4.7bn seK 2.9m Be v

Oasis Dental Healthcare 2013 £183m £275m Be iv

Phlexglobal* Healthcare 2014 £42m £20.1m Bdc ii

Pret A Manger consumer 2008 £364m £671m Be iii

Rodenstock consumer 2007 not disclosed €417m Be iii

The Dining Club Group* consumer 2015 not disclosed £17.5m Bdc ii

Trustly* Media & technology 2014 not disclosed seK 193m Bdc ii

TüvTurk Business services 2009 tRY347m tRY120m Be iv

Wiggle consumer 2011 £180m £193m Be iv


c u R R e n t i n v e s t M e n t sc u R R e n t i n v e s t M e n t s

Portfolio company Sector Date acquired Original deal size Revenue Fund

1st Credit Financial services 2004 £67m £33m Be ii

AHT Cooling Systems Manufacturing & industrials 2013 not disclosed €365m Be iv

A-Katsastus Group Business services 2006 not disclosed €111m Be ii

Anaveo* Business services 2015 not disclosed €43.7m Bdc ii

Appleby Fidicury Services Financial services 2015 not disclosed $84.6m Be v

Azzurri consumer 2015 £250m £218m Be v

Balt Healthcare 2015 not disclosed €40m Be v

Beck & Pollitzer* Business services 2007 £55m £72m Bdc i

BigHand* Media & technology 2012 £48m £25m Bdc i/ii

Cambridge Education Group Business services 2013 £185m £110m Be iv

Care UK Healthcare 2010 £414m £687m Be iv

Casino France Operations consumer 2005 not disclosed €10m Be ii

Compagnie Stéphanoise de Santé (C2S) Healthcare 2011 not disclosed €120m Bc i

CTL Logistics Business services 2008 not disclosed €162m Be iii

Diaverum Healthcare 2007 not disclosed €583m Be iii

DMC Power Manufacturing & industrials 2007 not disclosed $24.7m Be iii

Dorna SBK Media & technology 2013 not disclosed €309m Be iv

Dr Gerard consumer 2013 not disclosed €86m Be iv

eFront Media & technology 2015 €300m $102.7m Be iv

Element Materials Technology Business services 2015 not disclosed $291m Be v

* Denotes a Bridgepoint Development Capital investment * Denotes a Bridgepoint Development Capital investment

current investments

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governance factorsCompanies in which Bridgepoint invests have similar governance structures in place to ensure compliance with the law and effective monitoring of their performance.

i n v e s t i n g R e s p o n s i B l Y i n v e s t i n g R e s p o n s i B l Y

social factorsThrough our board representatives, we work with management teams of investee companies to implement appropriate social policies in their operations and procedures.

environmental factorsEnergy use, waste and recycling, water use and conservation, and supply chain environmental management.

investing responsibly

We’ve built responsible investing principles into our work and business practices, recognising that being a responsible investor is quite simply good for our business. That is why we have put in place strong environmental, social and governance principles. This approach is overseen by our Audit & Risk Committee, comprising senior members of the team and led by the chairman of our Advisory Board.

As a signatory of the United Nations’ Principles for Responsible Investment we also publicly undertake to demonstrate our commitment to embed relevant environmental, social and governance (‘ESG’) criteria into our decision-making and ownership practices and in that of the management teams of the companies our funds own.

“ We build responsible investment principles into all of our work and business practices.”

Daniel Wagener director, Bridgepoint

unpRiBridgepoint is a signatory of the United Nations Principles for Responsible Investment.

Bridgepoint charitable trustBridgepoint 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.

7 4

7 7


esg in practiceBefore we make an investment...For new investments, Bridgepoint identifies material environmental and social risks and opportunities as part of its investment selection process. We do so by requiring that pre-investment proposals include an analysis of ESG issues that are brought to the attention of our Investment Advisory Committee.

Portfolio companies must comply with relevant environmental and employment laws, particularly in relation to employees’ health and safety, rights and welfare. If a company is only in partial

compliance with statutory or regulatory requirements, Bridgepoint agrees plans with management for remedying this within an appropriate time period.

We also expect each portfolio company to assess the material environmental risks of their operations and to work towards relevant international good practice standards to mitigate environmental risks with targets and timelines for improvement. This is normally included within our 100-day plan when we acquire a business.

Once a company becomes part of our portfolio, we work with management teams to implement appropriate environmental and social policies in their operations and procedures that are relevant to their sector and in accordance with industry standards.

We encourage investee companies to work with like-minded trading partners to assess the material environmental and social risks of their operations and to work towards relevant international good practice standards to mitigate future risks with targets and timelines for improvement.

environmental factorsWe charge our portfolio management teams to instigate a range of initiatives that typically seek to improve energy and water use, waste recycling and more ethical supply chain management. This also means expecting suppliers to be able to demonstrate material compliance with relevant local, national and international environmental laws.

social factorsThrough our board representatives, we work with management teams of investee companies to implement appropriate social policies in their operations and procedures. These focus on employee health and safety, labour rights and welfare. Minimally, we expect suppliers to be able to demonstrate material compliance with local, national and international labour laws including those relating to health and safety.

governance factorsCompanies in which Bridgepoint invests have similar governance structures in place to ensure compliance with the law and effective monitoring of their performance. They are also structured so that major decisions by a portfolio company can only be reached with the agreement of Bridgepoint.

1.PR

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4. R E I N V E S T 3. P O S T I N

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Bridgepointinvestment

lifecycle

INVES T ING I N T H E B R O A D E R C O M M U N I T Y E N V I R O N M E N TA L

R ISK M AN A G E M E N T

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After we make an investment


Gwenaëlle Le Ho Daguzan director, paris

Maciej Chrystowski investment director, paris

7 9


integrating responsible and sustainable investing into our portfolio

7 8

case study

pret A Manger

case study

oasis

case study

tastecardAlongside its own dedicated higher welfare chicken flocks, in 2015 Pret A Manger made further progress in welfare standards in duck, lobster (US), laying chickens (US) and pork. Compassion in World Farming awarded the company in the USA the good (whole egg) award. The Pret Coffee Fund, now in its second year, is supporting 81 young farmers in one of its main Peruvian coffee cooperatives through a coffee growing training programme that also encourages and develops entrepreneurial diversification. Seed funding was also provided for an organic fertiliser development programme.

Oasis Dental Care is the leading provider of private dentistry in the UK and Ireland. 70% of its practices now offer a programme of outreach and oral health education to their local communities. All precious metals (from extractions and treatments) are responsibly recovered. 50% of recovery funds are used for other ESG activities including nurse volunteers for their charity partner, Bridge2Aid, training rural health workers in emergency dental care in Tanzania.

Over the last four years Tastecard has been a sponsor of Mary’s Meals, an international effort focused on breaking the poverty cycle by bringing food and education to the world’s poorest communities. In 2015 Mary’s Meals provided a daily meal in a place of education to over 1m children across the world. Tastecard, through the support of colleagues and card members, raised over £230,000 for Mary’s Meals to establish five school feeding programmes across Malawi, providing food to thousands of children every day.

In 2015, Fat Face developed its sustainability strategy to reflect key sustainability trends in the retail and garment sectors. With five key pillars, it covers all aspects of the business, with a greater investment in responsible sourcing. This included a supplier development and capacity 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.

case study

Fat Face


8 0


Bridgepoint is led by an experienced team of partners and is managed by a Board drawn from the partnership

The group board, Bridgepoint Advisers Group, has executive responsibility for setting the Firm’s strategy and ensuring that the shared values and business objectives we have set ourselves are upheld and met. Its members include:

John BarberBenoit BassiMichael BlackChris BusbyRaoul HughesWilliam JacksonJosé María MaldonadoFrédéric PescatoriGuy Weldon

A list of partners and other colleagues is profiled in full on the Bridgepoint website (www.bridgepoint.eu)

The Firm supports and endorses the recommendations of the Walker Guidelines for greater disclosure and transparency in private equity.

8 1


Ben Martin legal counsel, london

Bridgepoint has a number of governance structures to ensure that it remains accountable and transparent, and that there is complete alignment of interest between the Firm and its investors.

Operating Committees for each of our two areas of activity, Bridgepoint Europe and Bridgepoint Development Capital, are charged with our day-to-day operations in these areas.

Investment decisions are reached through an Investment Advisory Committee comprising members of the group board as well as other partners with specific sector or operating expertise.

Remuneration, Audit and Risk Committees ensure the proper and fair allocation of the laws and regulatory practices.

European Advisory BoardThe Firm also benefits from the input of a European Advisory Board. It works to provide insight, knowledge and experience to allow Bridgepoint team members to make better informed decisions about investments and development as a firm.

It comprises figures from different aspects of corporate and political life who are able to provide us with external perspectives on strategic, political, social and other matters to supplement the expertise of the Bridgepoint team.

Risk ManagementA partner-level General Counsel is responsible for ensuring that the Firm respects and adheres to internal policies and operating procedures. Internal guidelines are also in place to eliminate conflicts of interest, taking into account the Firm’s obligations under its fund management agreements and fiduciary duties. In addressing conflicts, it seeks to do so with integrity, professionalism and in the best interest of its investors.

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.

8 2


Bridgepoint charitable trustour work in the broader community

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 through working with all the family members.

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.

The Bridgepoint Charitable Trust (‘BCT’), with 10 trustees (including three independent trustees), aims to provide support to adopted charities in the countries where we operate as well as tactical support to the charitable activities of individual team members.

Candidate charities are suggested by local offices for the trustees to consider, from which a shortlist is drawn up and then voted on by team members across the Firm.

BCT also matches the charitable fund raising efforts of individual staff members and supports the charities sponsored by colleagues or companies having a close relationship with the Firm.

In 2015 we donated over £350,000 to charities, including the six adopted by Bridgepoint offices – Fryshuset in Stockholm, Un Orchestre a l’École in France, Teens and Toddlers in the UK, Gut Hausen in Germany. These were joined in 2015 by two new charities: AENILCE in Spain and Fundacja Dzieci Niczyje, or the Nobody’s Children Foundation, in Poland. To date, BCT has made over £1.6 million in donations to charitable endeavour across Europe.

Aenilce is a Spanish charity that operates a day-care centre for children and teenagers with severe brain disabilities, providing specialist treatment including physiotherapy, speech therapy and psychology.

BCT is supporting the charity as it expands its activities into a larger building which requires renovation work to triple its capacity to 60 children. The investment includes the renovation of various rooms in the building, adapting the rooms to the special requirements of children, and buying new equipment. Construction work on the new centre started in October 2015 and the Foundation is confident that the building will be fully operational by June 2016 when it can start welcoming children.

Our team in Madrid will also support the project in different ways including helping with financial analysis, negotiations with banks, extending their relationship as the new building takes shape.

Fundacja dzieci niczyje Poland

Website

www.fdn.pl

Website

www.fundacionaenilce.org

Aenilce Spain

8 3

new cHARitY

2015

new cHARitY

2015


8 5


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 year a ‘youth entrepreneurship’ project – Camp Connect, a four-day summer camp outside Stockholm for young adults. This is a forum to educate young adults to become tomorrow’s leaders with lectures and creative workshops with focus on entrepreneurship.

In France we renewed our support for Un Orchestre à l’École (‘OAE’), a non-profit organisation that transforms an entire class in a primary or junior secondary school into an orchestra. OAE, registered by the French Ministry 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 play individually and as part of a team. In 2015 BCT funded the set-up of eight orchestras in schools throughout France.

Fryshuset Sweden

un orchestre à l’École France

Website

www.orchestre-ecole.com


8 4

Website

www.fryshuset.se

gut Hausen Germany

Gut Hausen is a small charity founded in 2008 to promote environmental conservation and education, particularly through its work with kindergarten and primary schools. BCT funding is being used to build a new kindergarten outdoor area within a 2.5 hectare site within central Frankfurt.

In 2015 we funded the purchase of equipment for the first natural kindergarten in Frankfurt. This has allowed children to explore the site with a mixture of excursions, project work and free play where they are introduced to traditional culture and 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.

teens and toddlers United Kingdom

Teens and Toddlers is a UK charity that seeks to inspire young people to achieve the self-belief, skills and qualifications they need to succeed in education, at work and in life. They achieve this by placing teenagers in nurseries for three hours per week where they mentor a toddler as well as receive life skills coaching. In our final year of support, BCT funded 13 Tomorrow’s Leaders programmes in existing and new boroughs in London, reaching over 100 teenagers.

Website

www.teensandtoddlers.org

Website

www.lebenshilfe-ffm.de/de/gutHausen/gutHausen.php


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o u R o F F i c e so u R o F F i c e s

FrankfurtNeue Mainzer Straße 28 60311 Frankfurt am Main Germany Tel: +49 (0) 69 210 877 0 [email protected]

IstanbulVişnezade Mahallesi Suleyman Seba Caddesi BJK Plaza no:48 A blok 9.kat D:93-94 Akaretler/Istanbul Turkey Tel: +90 212 310 8252 [email protected]

London95 Wigmore Street London W1U 1FB United Kingdom Tel: +44 (0) 20 7034 3500 [email protected]

Luxembourg 2, avenue Charles de Gaulle L-1653 Luxembourg Tel: +352 26 47 56 [email protected]

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2015 Bridgepoint Annual Revie · BRidgepoint AnnuAl Review 2015 A long-established and experienced...

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