Bridgepoint Group Plc

Bridgepoint Group Plc raised its 2026 earnings forecast after a third-quarter revaluation of ProEnergy, an asset held in its Energy Capital Partners V fund, lifting both its 2026 performance related earnings and its earnings before interest, tax, depreciation and amortisation above current consensus. Bridgepoint holds a 13% share of the fund's carried interest, and it expects performance related earnings to make up about 37-39% of total income for the year to December 2026, while ECP V's money multiple is expected to rise to over four as at Sept. 30. Over the medium term, the company now expects performance related earnings to be 25-30% of total income, up from the 20-25% it guided to at its July 17 interim results, and it expects an EBITDA margin of around 60% in 2026 and 2027. Chief Executive Raoul Hughes said Bridgepoint could now introduce a new capital distribution policy while maintaining the necessary firepower to invest in the business, targeting total capital returns of 40%-60% of Cash from Profits over five years through an annual ordinary dividend of 40%-45% of earnings per share paid quarterly plus additional ordinary or special dividends or share buybacks. The company expects cash receipts of about £1.1 billion from co-investments and performance related earnings through 2030, exceeding the roughly £500 million received over the past five years, and it declared a second interim dividend of 5.0 pence per share for the third quarter alongside the 4.8 pence interim dividend announced in July, with quarterly dividends beginning in 2027. Bridgepoint reached its €28 billion fundraising target for the 2024-2026 cycle one quarter early, with Bridgepoint Direct Lending IV closing at €5.1 billion and ECP VI closing at $8.1 billion, while Bridgepoint Europe VIII has raised €7.8 billion of commitments and is expected to be fully allocated later this year at its €8.65 billion hard cap. Shareholder and fund investor approvals for the Kayne Anderson Real Estate acquisition announced on June 29 have been received, with the transaction expected to close on Jan. 4, 2027, and the guidance covers Bridgepoint Group and excludes KARE.

The FTSE 100 closed down 23.80 points, or 0.2%, at 10,484.22 on Monday, pressured by falling housebuilders and a sharp drop in Babcock International. Housebuilders declined after Bank of England data showed net mortgage approvals for house purchases fell to 56,200 in May from 66,000 in April, the lowest since December 2023, while net mortgage borrowing dropped to £2.9 billion from £4.4 billion. Babcock International led the FTSE 100 fallers, down 5.2%, amid reports the government has dropped plans for an advanced warship the defence group was vying to develop. Oil prices edged higher with Brent crude at 72.85 dollars a barrel after US-Iran tensions disrupted shipping through the Strait of Hormuz. On the FTSE 250, Bridgepoint Group jumped 16% after agreeing to acquire Kayne Anderson Real Estate for 1.39 billion dollars upfront, boosting its assets under management to around 120 billion dollars.