Bridgepoint increases earnings outlook and pledges higher dividend

Bridgepoint Group PLC on Wednesday raised full-year earnings guidance to reflect an "exceptional" performance from ECP V, an energy and infrastructure buyout fund.

The London-based private equity firm now expects performance related earnings, and earnings before interest, tax, depreciation and amortisation, to be materially in excess of current consensus due to the company's 13% share of the carry in the fund.

Bridgepoint said ECP V is delivering an exceptional performance such that the money multiple for the fund as a whole was over three times at the end of June. As at September 30, this is expected to increase to over four times including a material increase in the valuation of ProEnergy.

As a result Bridgepoint's 2026 PRE is expected to be around 37% to 39% of total income. In June it forecast PRE at the top-end of the 20% to 25% range, which is its long term expectation.

Bridgepoint closed the acquisition of Energy Capital Partners Holdings LP back in August 2024.

Energy Capital Partners V is a private infrastructure buyout fund managed by ECP. The fund officially launched in December 2021 and reached its final close in May 2024, raising a total of USD6.7 billion.

The fund invests in growth companies and assets that address soaring global electricity demand.

Increased PRE is expected to be sustained in the medium term at between 25% and 30% of total income. Consequently, Ebitda margin guidance for 2027 is also increased to around 60% from between 55% and 60%, the firm said.

Shares in Bridgepoint jumped 5.9% to 367.40 pence each in London on Wednesday morning.

Since higher PRE is expected to convert into increased cashflow over the next fund cycle, the company is also putting in place an enhanced shareholder distribution framework, it said.

The 2026 dividend per share will be rebased from around 10 pence per share to 15p per share, it said.

Going forward, the shareholder distribution framework will target the distribution of 40% to 60% of cash from profits starting from 2027.

This will consist of an annual ordinary dividend per share of 40% to 45% of earnings per share to be paid quarterly and additional distributions through ordinary or special dividends or share buybacks to meet the target for total capital returns of 40% to 60% of cash from profit over the five years to 2030.

Bridgepoint said it was introducing cash from profits as a new metric starting with 2026 results. It will comprise operating cash generated from fee related earnings together with cash receipts from carried interest and co-investments, less the cash costs of net interest expense, office leases and tax.

After the new capital framework has been implemented, Bridgepoint forecasts net leverage of less than 2 times net debt to underlying Ebitda.

In addition, Bridgepoint said it has continued to make good progress with its fundraising over the summer and has now exceeded the EUR28 billion target for the fundraising cycle from mid-2024 to 2026 one quarter early.

Copyright 2026 Alliance News Ltd. All Rights Reserved.