Investing.com -- Bridgepoint Group shares rose on Thursday after the company posted a modest earnings beat and reaffirmed its outlook for 2025 and 2026.
The private equity firm reported a 3-4% adjusted EBITDA beat on a proforma basis, with revenue coming in 1-2% higher than expectations.
The results were in line with estimates after factoring in higher depreciation, financing expenses, and foreign exchange impacts, according to Morgan Stanley.
The company’s fee-paying assets under management stood at €38.7 billion, in line with projections. Underlying fee-related earnings were recorded at £155 million, with margins coming in 4-5% ahead of expectations. Management fees and costs were also slightly better than consensus estimates.
Fundraising remains on track, with Bridgepoint targeting €24 billion for the 2024-2026 cycle, an increase from the previously guided €20 billion.
Despite recent market fluctuations, the company maintained its projection that performance fees will account for approximately 25% of revenue.
Additionally, EBITDA margins are now expected to be between 52-55% in 2025 and 2026, slightly above the consensus forecast of 50% in 2025 and 53% in 2026.
Deployment of capital is accelerating, with Bridgepoint’s BE VII fund now 64% committed across 13 investments, up from 51% in the first half of 2024.
The ECP V fund is also 64% invested, while the BDC V fund has reached 11% deployment. On the credit side, BDC III is 88% committed, with its successor fund expected to be activated soon.
The company highlighted strong visibility in the near-term exit pipeline, with several realizations lined up for 2025, two-thirds of which are expected in the second half of the year.