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Alliance News) - Atlantic Investments Holdings Ltd, trading as Bridgepoint, has outlined its plans to forge ahead with a London initial public offering.
The private equity firm - which was spun out of NatWest Group PLC in 2000 - is looking to float at least a quarter of its shares to raise around GBP300 million from the IPO to fund growth plans, boost cash in its own funds, and pay down debts.
On admission, the middle market private assets investor will be valued around GBP2 billion.
"Over the last 30 years we've built the global leader in middle market growth investing, with strength and depth across two very complementary strategies in private equity and private credit," Executive Chair William Jackson said.
He continued: "Bridgepoint operates across the middle market at scale, providing access for some of the world's most experienced investors to attractive growth businesses through its unique local insight and expertise and its well-resourced platform. We have delivered strong and consistent returns for investors and shareholders through different economic cycles."
Bridgepoint has hired JPMorgan Securities and Morgan Stanley & Co International as joint global co-ordinators, with JPMorgan Securities acting as sole sponsor, and BNP Paribas, Citigroup Global Markets Ltd and Merrill Lynch International as joint bookrunners.
The firm has grown its total assets under management significantly from approximately EUR3 billion in 2001 to EUR26.6 billion in 2020 and to EUR27.4 billion on March 31, 2021.
"Bridgepoint expects to continue to scale its existing private equity and private credit strategies in order to capture the forecast growth in its markets and continue the track record of strong AuM growth over the past two decades," the company explained.
Bridgepoint would join a small band of listed European buyout groups, including FTSE 100 firm 3i Group PLC, and comes amid a boom in private equity deals.
But the flurry of private equity deals is coming under increasing scrutiny as UK political concerns mount that the sector is taking advantage of cheap prices following the pandemic and Brexit.
The IPO announcement also follows hot on the heels of Bridgepoint's move last week to take a minority stake in Itsu, understood to value the Asian fast-food chain at GBP100 million.
The buyout firm, which was formerly NatWest's Equity Partners division, largely invests in firms worth up to around EUR1.5 billion in the so-called middle market investor sector.
One of its most well-known investments was sandwich chain Pret a Manger, which it owned for 10 years before selling to investment group JAB Holdings in 2018.
Russ Mould, investment director at AJ Bell, said: "The former private equity owner of Pret a Manger is seeking to become a listed company. 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."
Mould noted private equity firms have avoided stock markets in an attempt to shy away from public scrutiny, keeping 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 give the public a chance to share in its success and put itself on the radar of businesses which might be ripe for a deal," Mould noted.
By Paul McGowan; paulmcgowan@alliancenews.com
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