Private equity firm Bridgepoint eyes London IPO

Bridgepoint is looking to raise £300m by joining the London Stock Exchange, the private equity firm announced on Tuesday.

The firm, which has assets under management of £27bn and specialises in mid-market companies, said proceeds would be used to fund growth plans and pay down debt.

It is targeting a free float of “at least” 25% of its issued share capital and expects an over-allotment option for a further 15% of the offer size. It expects to join the main list upon its debut.

William Jackson, executive chairman, said: “We have delivered strong and consistent returns for investors and shareholders through different economic cycles.

“The company has been on its own journey of growth and diversification, increasing its total AUM from £9bn in 2011 to £27.4bn as of 31 March. Bridgepoint has an increasingly global footprint across Europe, North America and Asia.

“We expect this strong growth to continue in the near and longer term as we continue to develop our existing strategies and further broaden our platform.”

Bridgepoint was formed in 2000 following a management buyout of NatWest’s private equity arm. Focusing on deals of up to €1bn across six specific sectors, including consumer and healthcare, current investments include holdings in food brand Itsu and sports retailer Wiggle.

Russ Mould, investment direct at AJ Bell, said: “If the IPO goes ahead, Bridgepoint will join the market at an interesting time for the private equity sector, where deal flow is strong.

“Private equity firms have been sitting on large amounts of cash for some time, and they’ve got the money to buy companies. There is also appetite to sell holdings between private equity groups.

“Historically, private equity firms have tended to avoid the stock market, as they’ve preferred to keep their activities behind closed doors as much as possible. However, investor interest in private markets is growing. This means Bridgepoint could raise its profile by being a listed entity [...] and put itself on the radar of businesses which might be ripe for a deal.”

Bridgepoint has appointed JP Morgan Securities and Morgan Stanley as joint global co-ordinators.