Bridgepoint Group completes acquisition of Energy Capital Partners to create global private asset growth investor

Bridgepoint Group plc has finalized its acquisition of Energy Capital Partners Holdings LP, marking a significant milestone that enhances its position as a global leader in private asset growth investment, particularly within the middle market. This announcement follows the initial agreement disclosed in September 2023 and a series of updates provided throughout late 2023 and early 2024.

Background of the Deal

The acquisition is a strategic move by Bridgepoint Group plc to diversify and strengthen its investment portfolio, particularly by expanding its reach into the energy and infrastructure sectors. The transaction is valued at £835 million (approximately $1.05 billion) and includes a mix of cash, newly issued Bridgepoint Group plc shares, and the assumption of existing debt from Energy Capital Partners Holdings LP. Specifically, the deal comprises £233 million in cash, the issuance of 235 million new shares of Bridgepoint Group plc, and the assumption of £179 million in debt.

Energy Capital Partners Holdings LP, a North American private equity firm with a focus on energy infrastructure and environmental sectors, brings significant expertise to Bridgepoint Group plc’s platform. The acquisition is expected to accelerate growth by leveraging the complementary strengths of both firms. This is especially crucial during a time when energy security and global energy transitions are increasingly important.

The transaction positions the newly combined entity as a global powerhouse in private asset investment, with an enterprise value of approximately €57 billion. The combined group now operates across Europe, North America, and Asia, covering private equity, infrastructure, and credit investing, which aligns with Bridgepoint Group plc’s broader strategy to enhance its investment diversification and improve earnings quality.

Strategic Significance and Future Prospects

Raoul Hughes, Chief Executive of Bridgepoint Group plc, characterized the acquisition as a “transformational step” for both companies, emphasizing that the integration of Energy Capital Partners Holdings LP will bolster the group’s scale, strategic development, and earnings quality. Hughes noted that the partnership broadens growth potential by providing a more diversified product mix for investors and opening up new markets and sectors.

Doug Kimmelman, founder of Energy Capital Partners Holdings LP, expressed enthusiasm about the partnership, underscoring that the firm’s strong track record in energy infrastructure aligns well with Bridgepoint Group plc’s strategic goals. Kimmelman highlighted the complementary nature of their platforms and the new opportunities anticipated through Bridgepoint Group plc’s extensive global network and resources.

Listing of Newly Issued Shares

In line with the acquisition terms, entities affiliated with the Blue Owl Sellers have exchanged 22.8 million OP Units for newly issued Bridgepoint Group plc shares. Additionally, 4.3 million shares were issued to settle awards under the Energy Capital Partners Holdings LP Employee Equity Terms. Consequently, a total of 27.1 million newly issued shares of Bridgepoint Group plc will be admitted for trading on the London Stock Exchange’s Main Market on 22 August 2024, signifying the formal integration of Energy Capital Partners Holdings LP into Bridgepoint Group plc’s operational framework​.