Bridgepoint Development Capital IV hits £1.5bn hard-cap

The fund was launched in January 2020 and held a first close in May 2020 on an undisclosed amount, according to a source.

Bridgepoint declined to comment.

The vehicle is larger than its predecessor, Bridgepoint Development Capital III (BDC III), which closed on £605m in June 2016, exceeding its £500m target. The vehicle is currently nearing completion of its primary investment period with 80% of its capital invested across 12 assets.

In addition to its Bridgepoint Development Capital range, which is dedicated to investments in the European lower-mid-market, Bridgepoint also manages the flagship Bridgepoint Europe funds, which target companies valued at €200m-1.3bn.

Furthermore, the firm invests through its Bridgepoint Growth range, which makes growth capital investments in the consumer, media, technology and business services sectors in companies using digital technologies to achieve transformational growth in their end markets.

In the debt space, the firm operates via Bridgepoint Credit, which specialises in private debt lending to European mid-market companies. Bridgepoint acquired EQT's credit business in June 2020, and combined it with its existing credit business. Following the merger, the combined group reached assets under management of around €7bn.

Investors
BDC IV's investor base comprises institutional investors from the US, Europe, the Middle East, Asia and Australia.

Fundraising for the vehicle benefited from strong re-commitment among existing investors, with an increase in commitment of around 90% on average, Unquote understands.

According to Unquote Data, the vehicle's investor base includes several US pension funds, such as Pennsylvania Public School Employees Retirement System, which committed around £125m; South Carolina Retirement Systems, with a £75m commitment; Teachers' Retirement System of Louisiana, with a £50m ticket; and Santa Barbara County Employees' Retirement System, among others.

Investments
BDC IV deploys equity tickets in the £20-100m range, investing in European mid-market companies with enterprise values of £30-150m.

It targets both buyouts and growth capital opportunities, and plans to make around 20 investments, the source said.

The fund is poised to target a range of sectors, with a focus on business services, consumer, financial services, healthcare, industrials, media and technology.

Geographically, the fund is expected to follow the same strategy as its predecessor, deploying at least 80% of its capital in its core markets, which include the UK, France and the Nordic region.

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