Download 2008 Annual Review - Bridgepoint Capital

annual review 2008 

International Private Equity 

Frankfurt 

Neue Mainzer Straße 28 

D-60311 Frankfurt/Main 

Tel: +49 (0) 69 21 08 770 

Email: Frankfurt@bridgepoint.eu 

London 

30 Warwick Street 

London W1B 5AL 

Tel: +44 (0) 20 7432 3500 

Email: London@bridgepoint.eu 

Luxembourg 

24 rue Beaumont 

L-1219 Luxembourg 

Tel: +352 26 47 56 

Email: Luxembourg@bridgepoint.eu 

Madrid 

Calle de Rafael Calvo 39A-4° 

28010 Madrid 

Tel: +34 91 702 2490 

Email: Madrid@Bridgepoint.eu 

Milan 

Via F.IIi Gabba 1/a 

20121 Milano 

Tel: +39 02 806 951 

Email: Milan@bridgepoint.eu 

Paris 

37–39 rue de la Bienfaisance 

75008 Paris 

Tel: +33 (0) 1 44 29 21 00 

Email: Paris@bridgepoint.eu 

Stockholm 

Mäster Samuelsgatan 1 

111 44 Stockholm 

Tel: +46 8 545 168 20 

Email: Stockholm@bridgepoint.eu 

Warsaw 

Rondo ONZ 1 

00-124 Warszawa 

Tel: +48 22 544 82 82 

Email: Warsaw@bridgepoint.eu 

bridgepoint.eu

1 

Who we are 

Our values 

Bridgepoint is a major international private 

equity group focused on investing in leading 

middle market businesses across Europe. 

The Firm is led by 25 partners and 

an Operating Committee chaired 

by our Managing Partner. 

Decisions relating to whether or 

not we invest in businesses are 

made by an Investment 

Committee formed of the most 

experienced partners from across 

our business. 

We are 

> A key partner for institutional investors around 

the world 

> A leader in financing businesses and growing 

them organically and by acquisition 

> The most evolved pan-European firm with an 

investment focus on the European middle market 

Bridgepoint’s combination of financial strength, 

industrial and strategic skills makes it a private equity 

manager trusted by its investors and sought after by 

businesses seeking expertise to sustain growth 

and prosperity. 

John Barber * 

Charles Barter 

Benoît Bassi * 

Michael Black * 

Vincent Briançon 

Chris Busby 

John Davison 

Michael Davy 

Patrick Fox 

* 

Operating Committee member 

Alastair Gibbons * 

Vince Gwilliam 

Raoul Hughes * 

William Jackson * 

Uwe Kolb * 

Mikael Lövgren 

José Maria Maldonado * 

Rob Moores 

James Murray 

Graham Oldroyd 

Lucio Ranaudo 

Kevin Reynolds 

Xavier Robert 

Khai Tan 

Valérie Texier 

Guy Weldon * 

Responsible 

> The Firm pays great attention to the social, economic and 

environmental impact of its activities. We are responsible to: 

– Our investors 

– Our portfolio companies and their employees 

– Our employees 

> We demand high levels of corporate governance and ethics 

within our own business and those in which we invest 

Intelligent 

> We seek to invest intelligently through: 

– Depth and breadth of experience 

– Shared experience of our portfolio businesses 

– Professional ‘can do’ approach 

Open 

> We take time to understand issues facing management teams 

> We are independent of prejudice in assessing opportunities 

> We are receptive to changing markets and business strategies 

> We are willing to tackle complex transactions or 

correct mistakes 

Ambitious 

> We are ambitious to deliver: 

– For our investors who entrust their funds to us 

– For the 43,000 managers and employees of the companies 

we back 

– For our people whose teamwork and dedication drive 

our success

2 

Managing partner’s statement 

3 

2008 was a watershed for the world’s financial markets. It resulted 

in some of the most famous names in finance disappearing and 

in governments intervening on an unprecedented scale to try to 

restore stability to financial systems and economies. It is no surprise 

that in these markets the private equity sector in Europe has faced 

considerable challenges. 

Investments & realisations 

In the 12 months to 31 December 2008, 

Bridgepoint deliberately slowed its new 

investment activity. We committed 

€339 million to two new investments 

– Pret A Manger and Alliance Medical – 

whose combined transaction value was 

€1.3 billion. We also rolled over €56 

million of proceeds from our successful 

sale of Tunstall to retain a minority stake 

in what we continue to regard as a 

compelling growth asset. Our objective 

in standing back from markets was to let 

transaction multiples recalibrate and 

vendor price expectations adjust to a 

new reality driven by deteriorating credit 

markets and economic turmoil. 

Not surprisingly, the opportunity to exit 

businesses in 2008 was severely 

restricted by the unfolding economic 

gloom. Despite this unfavourable 

environment, Bridgepoint investors 

received €449 million in proceeds from 

two material sales (representing strong 

multiples of cost) and a number of 

smaller disposals from older portfolios. 

We believe this result is a creditable 

performance in a difficult market. 

Portfolio 

Over the last three years Bridgepoint 

has worked to construct a largely 

defensive portfolio in anticipation of 

more difficult times. This strategy has 

proved to be hugely valuable as 

economic conditions now test the 

strength of all companies, whether in 

private equity ownership or not. With 

these tougher conditions set to 

continue well into 2010, Bridgepoint’s 

management teams have a mandate 

to ensure that each company reacts 

rapidly to changing market 

circumstances, evolving strategies and 

reducing costs where appropriate, 

while maintaining and building 

efficiency, and creating value. Each 

business is mindful of achieving and 

enhancing market leadership through 

investment in people, infrastructure 

and product innovation. In this regard 

Bridgepoint portfolio companies 

successfully created 639 net new jobs 

during 2008, bringing the number of 

employees in the companies owned by 

our funds across Europe to nearly 

43,000. During the year we have also 

been alert to bolt-on acquisition 

opportunities presented by market 

conditions, reflected in the fact that our 

portfolio companies completed 21 

additional acquisitions during the year, 

bringing new territorial and product 

reach as well as increasing earnings. 

Talent 

During the year Bridgepoint continued 

to develop its own resource base 

across Europe. Our responsibility to the 

people we employ directly or indirectly 

is paramount. In 2008 we appointed a 

Human Capital Management Director 

to focus on our own team members’ 

career development, as we add to the 

Firm’s knowledge and skill base across 

a number of geographies. At the same 

time, we appointed our first Group 

General Counsel to oversee all of our 

legal affairs, compliance and the Firm’s 

risk management. 

In these demanding times Bridgepoint 

benefits from having a cohesive and 

consistent senior team that has shared 

experience of difficult cycles in the 

past. Moreover, the depth and breadth 

of talent in the team as a whole 

provides us with the capacity to 

manage challenges and opportunities 

appropriately as they arise. 

Investing in more 

challenging times 

November 2008 saw the successful 

completion of our Bridgepoint Europe 

Fund IV, raising over €4.8 billion in 

commitments from a very high quality 

and diverse set of institutional and 

private investors. Importantly, the fund 

provides Bridgepoint with new equity 

capital at a time when cash is king and 

as the very adversity of current markets 

starts to create compelling new 

investment opportunities. How can 

there be good new investment 

opportunities in such challenging times 

and when there is a shortage of new 

banking lines 

Firstly, in the next 36 months we expect 

there to be outstanding opportunities 

to purchase good assets at better 

relative entry prices than seen for over a 

decade and to make investments at a 

point in the economic cycle which 

provides significant potential medium 

term trading upside. Secondly, while 

banking markets remain difficult, it is 

very clear that banks are now prepared 

to roll over existing debt on newly 

negotiated terms for new ‘deleveraged’ 

transactions. This is especially the case 

in the mid-market where there are good 

companies that are overleveraged and 

where the lending syndicate now wants 

to reduce its exposure. And thirdly, 

banks are on a selective basis seeking 

opportunities to provide debt finance in 

the right geographies and sectors for 

new transactions within Bridgepoint’s 

middle market investment range. 

Good investment opportunities are 

already starting to arise from financially 

constrained vendors. This constraint 

will take the form of businesses, 

typically growth or market-leading 

companies, which might currently be 

over-leveraged or suffering short-term 

trading reversals but whose mediumterm 

prospects remain strong. We also 

expect to see strong investment value 

in opportunistic distressed situations 

where corporates need to raise cash 

quickly and are prepared to sell prized 

assets to achieve rapid liquidity. This 

of course will not obviate the need 

for critical individual sector and 

asset selection as well as rigorous 

due diligence on the strengths 

and weaknesses of each potential 

investment. 

Taking a medium-term time horizon, 

we believe that there will also be 

cyclical plays in businesses likely to be 

affected by corporate and consumer 

expenditure levels. And there are of 

course strong defensive assets always 

requiring capital for growth, for 

example in healthcare, whose 

performance is largely uncorrelated 

with consumer cycles. 

Positive outlook 

While Bridgepoint faced new challenges 

during 2008, it is pleasing to report that 

the Firm ended the year in robust good 

health and I remain confident and 

encouraged that our business and 

portfolio companies are well placed to 

tackle the next 12 months and beyond. 

Bridgepoint itself is positioned to move 

quickly but selectively to acquire new 

assets within its investment and criteria 

range. 

Over the last three decades private 

equity in Europe has thrived in periods 

of change. I have no doubt that the 

industry will emerge reshaped from 

these times with some clear new 

winners. Bridgepoint looks forward to 

playing an active role in this dramatic 

period of change, encouraged by the 

prospect that 2009/2010/2011 will be 

among the best vintage investment 

years yet in our industry. 

William Jackson 

Managing Partner

4 

How we’ve done 

Who we’ve worked with this year 

5 

Our aim is to use Bridgepoint’s local insight and 

industry expertise across Europe to acquire 

middle market companies valued up to €1 billion 

that can be grown organically or by acquisition 

and to which we can add value under ownership. 

€395 million 

invested in one new investment and two minority stakes 

€449 million 

received in realisation proceeds 

639 new jobs created 

added in 2008 by our portfolio companies 

30 investments 

currently managed in 10 countries 

Unrealised investments 

by sector 

• Business Services 

• Consumer 

• Financial Services 

• Healthcare 

• Industrials 

• Media and Tech 

Alliance Medical 

Diagnostic imaging service provider 

Acquired February 2008 

UK 

€811 million enterprise value 

Revenue: €228 million 

No of employees: 1,584 

Alliance Medical is the leading 

provider of diagnostic imaging 

services, such as MRI and CT scans, to 

the healthcare sector across Europe. 

It was founded in 1989 and was the 

subject of a Bridgepoint-backed MBO 

in 2001. It was subsequently sold 

to Dubai International Capital (DIC) 

in 2007 in a transaction totalling 

€811 million. Under Bridgepoint 

ownership the company had made 

16 acquisitions, revenues increased 

six-fold and profits five-fold. 

Recognising the continued growth 

potential of the business, Bridgepoint 

exercised its option at the time of the 

sale to reinvest €66 million for a 

minority stake in Alliance Medical 

alongside DIC. Since our investment, 

the company has continued to 

perform to budget and acquired the 

third largest radiology services group 

in the UK to consolidate Alliance’s 

UK position and so giving it complete 

national coverage. 

The European outsourced 

diagnostics market remains attractive 

due to ongoing demand from 

national healthcare systems for high 

quality service and state of the 

art technology. 

Directors: 

Eric Kump, Brian Lindley, 

Alan Pilgrim, Charlie Ralph, 

David Smoot, Geoff Unwin, 

Robert Waley-Cohen 

Bridgepoint representative: 

Rob Moores

6 

Who we’ve worked with this year 

7 

Pret A Manger 

Freshly prepared healthy food & beverages retailer 

Acquired April 2008 

UK 


Revenues: €261 million 

Number of employees: 4,264 

Directors: 

Sinclair Beecham, Laurence Billett, 

Nick Candler, Clive Schlee 

Bridgepoint representatives: 

Vince Gwilliam, William Jackson, 

Guy Weldon 

Tunstall 

Telecare solutions provider 

Acquired April 2008 

UK 




Directors: 

James Buckley, Neil Duffy, 

Jeremy Greenhalgh, 

Giuseppe Prestia, Steven Sadler 


Rob Moores 

Pret A Manger (‘Pret’) is the UK’s 

leading retailer of ready-to-eat food 

and beverages targeting busy urban 

consumers. It was acquired in April 

2008 in a transaction totalling 

€499 million. Founded in 1986, Pret 

has 220 shops, principally in the UK 

but with outlets in the US and Hong 

Kong. The company is known for its 

powerful service culture and for its 

healthy, organic, freshly-prepared 

and ethically sourced food. 

In addition to Pret’s strong historic 

track record of like-for-like sales 

growth, Bridgepoint has identified 

further rollout opportunities across 

Pret’s core London market as well 

as in under-penetrated UK regions. 

There are also additional opportunities 

in international markets where Pret is 

already present. 

Tunstall is the European market 

leader in the provision of telecare 

systems, principally for use by the 

elderly and infirm. Its activities 

include care alarm systems for 

private homes and assisted living 

environments such as care homes, 

software for use by monitoring 

centres to respond to alarms raised 

and the operation of call centres on 

behalf of local authorities, and related 

support services. The business was 

acquired by Bridgepoint in 2005 in a 

transaction totalling €336 million. 

Bridgepoint subsequently achieved a 

successful, partial exit from its 

investment when a majority stake in 

Tunstall was sold to Charterhouse 

Capital Partners (‘CCP’) in a 

transaction valued at €667 million. 

Recognising the compelling and 

sustainable long term growth 

prospects of Tunstall, Bridgepoint 

negotiated with CCP to reinvest and 

take an 18% equity stake. 

Tunstall is expected to continue to 

benefit from further geographic 

expansion, particularly in Asia and the 

further extension of its call 

monitoring business where the 

company aims to become the key 

outsource partner for local 

authorities. It is also developing a 

common product platform to 

maximise cost saving opportunities.

8 

Bridgepoint’s portfolio of investments 

as at 31 December 2008 

9 

1st Credit 

A-Katsastus 

Aenova 

CTL Logistics 

Diaverum 

Dorna 

Original deal size: €103 million 


Sector: Financial Services 

Number of employees: 265 

UK 

Directors: Ken Culley, Simon Dighton, 

Charles Holland, Najib Nathoo, 

Simon Young 


John Davison, Kevin Reynolds 

Original deal size: n/d 


Sector: Business Services 


Finland 

Directors: Lasse Korpi, Ilkka Rantasalo, 

Seppo Syri, Juha Tukiainen, 

Terhi Vähähyyppä 


Mikael Lövgren, Graham Oldroyd 



Sector: Healthcare 


Germany 

Directors: Heiko Bjarsch, 

Heiner Hoppmann 


Michael Davy, Jason McGibbon 





Poland 

Directors: Cezary Nowakowski, 

Jarosław Pawluk 


Patrick Fox, Dominik Kwiecień, 

Khai Tan, Maciej Zużałek 





Sweden 

Directors: Anders Althin, 

Dag Andersson, Annette Kumlien 


Håkan Johansson, Rob Moores, 

William Paul 



Sector: Media and Tech 


Spain 

Directors: Enrique Aldama, 

Carmelo Ezpeleta 


William Jackson, José Maria Maldonado, 

William Paul 

Alain Afflelou 

CFP Flexible Packaging 

Clinical Solutions 

ERM 

Fat Face 

Forstinger 



Sector: Consumer 


France 

Directors: Alain Afflelou, 

Jean-Louis Rambaud 


Benoît Bassi, Vincent Briançon, 

Valérie Texier 



Sector: Industrials 


Italy 

Directors: Angelo Bonissoni, 

Maurizio De Costanzo 


Cesare Zetti 





UK 

Directors: David Baker, Richard Craven, 

Tom Dunn, Shaun Hopgood, 

Iain Jamieson, Greg Jones, 

Bernard Liautaud, Denis McShane, 

John Stevens, David Thorpe 


Patrick Fox, Edward Woods 





UK 

Directors: John Alexander, 

Robin Bidwell, Michael Hauck, 

James Kelly, Pete Regan, 

Andrew Silverbeck, Ann Sirois 


Chris Busby, Kevin Reynolds 





UK 

Directors: Louise Barnes, Alan Giles, 

Shaun Wills 


Chris Busby, Guy Weldon 





Austria 

Directors: Dr. Wolfgang Lenoir, 

Dr. Christian Reimitz 

Bridgepoint representative: Patrick Fox

10 

Bridgepoint’s portfolio of investments 

as at 31 December 2008 

11 

Global Design 

Technologies 

Groupe Moniteur 

Infinitas Learning 

Limoni 

Pets at Home 

Rodenstock 



Sector: Industrials 


France 

Directors: Laurent Chassepot, 

Doug Hudson, Ross McInnes, 

Olivier Robert 


Christopher Bell, Michael Davy 





France 

Directors: Fabrice Fries, Eric Licoys, 

Patrick Molis 


Michael Black, Frédéric Pescatori, 

Xavier Robert 





UK 

Directors: Bernard Al, Kevin Beeston, 

Fred Grainger, Frank Vrancken Peeters, 

Han Stoop 


Michael Black, Jason McGibbon, 

Ramesh Venkataraman 





Italy 

Directors: Angelo Bonissoni, 

Massimiliano Dri, Carlo Gianuzzi, 

Cesare Zetti 


Lucio Ranaudo, Valérie Texier 





UK 

Directors: Matt Davies, John Farrell, 

Sally Hopson, Ian Kellett, 

Catriona Marshall, Luke Mayhew, 

Anthony Preston 


Vince Gwilliam, Guy Weldon 





Germany 

Directors: John Jetter, Peter Littmann, 

Uwe Loos 

Bridgepoint representatives: Uwe Kolb, 

Graham Oldroyd 

JOA Groupe 

John Brown 

Media Group 

Leeds Bradford 

International Airport 

Safestore 

SEA 





France 

Directors: Raymond-Max Aubert , 

Alain Cousineau, Claude Poisson, 

Alain de Pouzilhac 


Benoît Bassi, Vincent Briançon, 

Alan Lewis 





UK 

Directors: Dean Fitzpatrick, 

David Gilbertson, Andrew Hirsch, 

Philip Odom, Geoff Stevens 


Kevin Reynolds, Jamie Wyatt 





UK 

Directors: Tony Hallwood, 

Carl Lapworth, Robert Memmott , 

John Parkin 


Alan Lewis, Adrian Williams 





UK 

Directors: Roger Carey, 

Richard Grainger, Richard Hodsen, 

Adrian Martin, Steve Williams 


Vince Gwilliam 





Italy 

Directors: Luca Bianchi, Loriano Corsi 


Michael Davy, Yuri Pizzasegola

THE 

POINT 

THE 

POINT 

THE 

POINT 

12 

About Bridgepoint 

13 

> Over 70 investment professionals led by 25 partners 

> Over €12 billion of committed capital raised to date from a world-class investor base 

> A portfolio of businesses with over 43,000 employees across Europe 

> Completed over 95 transactions in the last ten years worth over €16 billion 

> Made over 120 add-on acquisitions for investments since 2000 

> Returned over €7.5 billion to investors since 2000 

Conflicts of interest 

Bridgepoint recognises that in going 

about its business it may be exposed to 

conflicts of interest. It seeks to manage 

these conflicts with its obligation under 

its fund management agreements and 

in accordance with its fiduciary 

duties: it does so with integrity, 

professionalism and in its investors’ 

best interests. 

Risk management 

Responsibility for Bridgepoint’s risk 

management lies with our partners 

and is overseen by our Group General 

Counsel. Our aim is to apply the 

highest standards of professionalism 

across our business and to ensure that 

the necessary controls are in place 

to mitigate risk wherever possible. 

Trade Unions 

Bridgepoint recognises and engages 

with trade unions/workers’ councils 

and as a responsible investor 

welcomes constructive input from 

workforce representatives. 

Corporate social responsibility 

Bridgepoint is aware of its wider 

responsibility to the community and 

its employees. Accordingly, before we 

make investments we take account 

of the environmental and social 

impact of our actions. Additionally, 

Bridgepoint is an investor in the ERM 

Foundation’s Low Carbon Enterprise 

Fund in support of more sustainable 

low carbon projects in the emerging 

world and contributes to the work of 

the Private Equity Foundation. The 

Firm also made donations to a range 

of charities throughout 2008. 

by geography Investors by in geography Bridgepoint Investors in funds by type Investors in Bridgepoint by type in Bridgepoint funds funds 

Bridgepoint funds 

We communicate regularly with our 

stakeholders through our magazine, 

The Point. 

C u l t u r a l e x c h a n g e 

Delivering 

the goods 

TRUST 

Hidden treasures 

• Asia 

• Sovereign entities 

• UK 

• Asset manager 

Middle EastSovereign entities Endowment foundations 

• Rest of Europe North America Asset manager • Bank Fund of funds 

Europe • North America Bank • Corporate Insurance pension funds companies 

• Middle East Corporate pension funds Public pension funds 

• Endowment foundations 

• Fund of funds 

• Insurance companies 

• Public pension funds 

To obtain a copy go to 

www. bridgepoint.eu

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