Bridgepoint said it was betting on a rebound in dealmaking in the second half of the year today after its investment income slumped in the first six months amid lingering volatility and a sluggish exit market.
In its first half results today, the FTSE 250 investor said its managed assets had ticked up 3.9 per cent on the same period last year to €39.5bn, an increase of six per cent on the same period last year and 48 per cent since the firm floated in 2020.
Management fees for the firm reached €124.6m in the first six months of trading, down from a bumper €140.6m raked in in the second half of last year but a near-quarter rise on the first half of last year, when it made €100.9m.
Private equity firms have been hit by the slowdown in dealmaking and volatile markets in the wake of war in Ukraine and rising interest rate, which have scuppered their ability to exit some investments over the past 12 months.
Bridgepoint said its investment income slumped to €12.7m in the first six months, down from €38.7m last year.
Chairman of the firm William Jackson said it had been a “strong” start to the year but the firm was now hoping for a more booming period of dealaking to in the second half of the year.
“Market conditions in H1 2023 saw extended transaction timelines with exits, fundraising and new investments all taking longer to complete as parties undertake robust and detailed diligence,” he said.
“As we move into H2, we are already seeing activity increase in the M&A market. In this context, Bridgepoint remains on track to deliver full year results in line with financial guidance albeit performance is weighted to the second half of the year with transactions across the business taking longer to complete.”
Pre-tax profits pre-tax profits meanwhile climbed ten per cent to £53.1m.
The firm said it had also won “some €6bn of commitments for its latest fund amid a continued slow fund-raising market.