Bridgepoint on track for H1 2023 Fund VII final close

Bridgepoint VII was registered with the UK Companies House in May 2021. Its EUR 5bn predecessor held a final close in December 2017.

The fund is expected to hold a formal second close in Q1 2023, the firm said. It has committed 10% of its capital since its investment period began in May 2022, following its EUR 4bn first close.

The fundraising timeline therefore remains unchanged from Bridgepoint's H1 2022 results, published in July 2022, in which it also said that the fund would hold a final close in H1 2023. The fund has a EUR 7bn target, the GP said in its H1 2022 results.

Some of the vehicle's LPs are planning to draw capital to commit to the fund from their 2023 allocations, it added in the same statement.

Bridgepoint referred to the current challenging fundraising market in the statement, noting that the denominator effect is "extending most current fund raising processes".

As reported, private equity funds of all sizes are taking longer to reach a final close, with LPs needing to push commitments to 2023 following an exceptionally busy fundraising year in 2022, combined with the need to balance their public and private portfolios.

The firm said in the statement that the fundraising processes for Bridgepoint Credit and Bridgepoint Growth are also "making good progress" but did not disclose further details.

Portfolio positioning
The GP gave updates on its existing portfolio relating to current macroeconomic concerns. It said in the statement that its portfolio is trading "largely in line" with the expectations that it set at the start of the year.

In spite of concerns around rising energy costs, the statement noted that the average cost of energy across its portfolio is around 2% of revenues.

The firm has attempted to shore up its portfolio against currency woes, with currency hedging covering 78% of its non-Euro exposures, it said. In addition, it has rate hedging in place for 69% of the interest costs arising from its equity funds.

The GP's funds also have "limited exposure to assets driven by discretionary spending", the firm said.

Bridgepoint's consumer sector assets include UK-headquartered healthy Asian food chain Itsu, which it backed in 2021. However, according to Unquote Data, the majority of its recent platform investments have been in sectors including technology, business services and financial services.

The firm's 2023 exit plans remain unchanged, the statement added, but "execution will be dependent on market conditions". It will be "cautious" in evaluating acquisitions given valuation fluctuations, it added.

Unquote sister publication Mergermarket reported in October 2022 that Bridgepoint portfolio company Qualitest was tipped as a sale candidate following inbound sponsor interest. It acquired the UK-based software testing company in 2019.

Fellow UK-headquartered listed GP 3i said in its recent Q3 results that it expects 2023 to be a strong year for exits, with GBP 1bn expected to roll in from portfolio realisations, as reported.

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