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1、2023Bridgepoint Group plc Interim Report Financial highlights Assets under management(AUM)39.5bn(YE 2022:38.0bn,HY 2022:37.1bn)Underlying profit before tax50.0m(H2 2022:68.1m,H1 2022:51.9m)Reported profit before tax53.1m(H2 2022:79.1m,H1 2022:48.3m)Underlying FRE42.9m(H2 2022*:51.8m,H1 2022*:22.5m)T
2、otal operating income137.8m(H2 2022:167.3m,H1 2022:140.1m)Underlying pro forma earnings per share5.6p(H2 2022:8.0p,H1 2022:6.0p)Reported pro forma earnings per share5.9p(H2 2022:9.3p,H1 2022:5.5p)Underlying EBITDA55.6m(H2 2022*:78.0m,H1 2022*:61.2m)An explanation of the alternative performance measu
3、res (“APMs”)used by the Group,including underlying profit before tax,underlying EBITDA and reported and underlying pro forma earnings per share,is set out on pages 19 to 20 along with a reconciliation to statutory measures.Alternative Performance MeasureKeyKey Performance IndicatorMeasure defined by
4、 IFRS*2022 EBITDA and FRE have been restated to exclude non-operating foreign exchange gains/lossesContentsChairmans statement 2KPIs:tracking our performance7CFO statement9Alternative performance measures19Required disclosures21Independent review report to BridgepointGroup plc22Condensed consolidate
5、d financial statements23Notes to the condensed consolidated financial statements28Supplementary information45ContentsBridgepoint 2023 Interim Report1Im pleased to report that Bridgepoint has enjoyed a strong first half of 2023.During the first six months of the financial year the Company recorded st
6、rong fund performance,enjoyed attractive credit deployment conditions,made positive progress on fundraisings and committed fund capital in line with original expectations by exploiting attractive buying conditions in the European Middle Market.Market conditions in H1 2023 saw extended transaction ti
7、melineswith exits,fundraising and new investments all taking longer to complete as parties undertake robust and detailed diligence.As we move into H2,we are already seeing activity increase in the M&A market.In this context,Bridgepoint remains on track to deliver full year results in line with finan
8、cial guidance albeit performance is weighted to the second half of the year with transactions across the business taking longer to complete.Our confidence ahead reflects the strength of both our favourable middle market positioning and Bridgepoints business model which provides multiple routes to de
9、liver targeted financial performance.In summary:In the first half of 2023,Bridgepoint generated management and other fees of 124.6 million(an increase of 24 per cent.from H1 2022),which included the recognition of only 2.6 million of late fees relating to BE VII,underlying FRE of 42.9 million(an inc
10、rease of 91 per cent.from H1 2022)and profit before tax of 53.1 million(an increase of 10 per cent.from H1 2022);As normal we currently have several funds raising,or about to raise,new capital.The Bridgepoint Europe VII(“BE VII”)fund raise is now well on the way to completion.It received capital com
11、mitments of some 0.5 billion over the last quarter and has now exceeded its predecessor fund in size with 6 billion of commitments received to date.In slower fundraising markets the fund will remain open for commitments until early 2024 to allow investors in process to participate in the fund using
12、both 2023 and 2024 capital allocations.Importantly from a financial perspective,investors joining in Q1 2024 pay late fees backdated to the funds first closing last year;In more favourable credit market conditions Bridgepoint Direct Lending III(“BDL III”)and associated Separately Managed Accounts(“S
13、MAs”)held a final close in the first half of 2023 with investable capital of over 3.4 billion.This is materially larger than the predecessor vintage,underlining strong investor appetite for the Direct Lending product in the current market;Bridgepoint Credit Opportunities IV(“BCO IV”)and Bridgepoint
14、Growth II(“BG II”)are currently in the market and due to close in the next 12 months.Bridgepoint Development Capital V(“BDC V”),Bridgepoint Direct Lending IV(“BDL IV”)and Bridgepoint Credit Opportunities V(“BCO V”)are all expected to begin fundraising in the next 12 months;Fund capital deployment re
15、mains on track across the Group with M&A markets starting to see renewed activity in the last quarter.BE VII has now committed 18 per cent.of its primary capital,as it builds a high quality portfolio of growth assets and Bridgepoint Development Capital IV(“BDC IV”)has committed 69 per cent.of its pr
16、imary capital.In credit,across the Direct Lending and Credit Opportunities strategies the team has deployed around 1.7 billion of capital over the last 12 months;Bridgepoints equity funds also agreed a range of exits during the first half of the year which will return over 600 million to fund invest
17、ors.These transactions have been weighted mainly to historic funds.The pipeline of exits on more recent Funds(Bridgepoint Development Capital III(“BDC III”),Bridgepoint Europe V and VI(“BE V”and“BE VI”),where the Company has a more material direct economic interest,continues to grow and a return of
18、some 4 billion of capital is targeted over the next 18 months.We currently expect our targeted exits for 2023 will be delivered in the second half of the year,however,some of these exits may move into the 2024 financial year in current market conditions;Strong value creation has also continued acros
19、s our fund portfolios,with all flagship funds enjoying trading either on or ahead of plan.Both credit and equity funds performance continue to be strong reflecting their sector positioning,low exposure to companies dependent upon discretionary spend and the start of input price deflation which we ar
20、e now seeing in certain sectors.Chairmans statement William JacksonBridgepoint 2023 Interim Report2Company financial performanceThe positive performance of our credit and equity funds during the first half of 2023 and the associated Company financial performance is testament to Bridgepoints depth of
21、 business and cycle experience and the resilience and professionalism of our team against a backdrop of challenges in geopolitics,financial markets,and monetary policy responses to address inflation.In H1 2023,AUM increased by 6.5 per pared to H1 2022 to reach 39.5 billion.This represents growth of
22、48 per cent.since IPO when AUM(at FY 2020)was 26.6 billion.Acrossour equity and credit funds,3.3 billion was deployed innew and follow-on investments and 3.0 billion of capital was realised during this same period.With the extension to the BE VII fundraising period,late fees relating to future commi
23、tments will be charged from first close and recognised in H2 2023 or H1 2024 depending on the timing of those final commitments.As noted above,we continue to be confident in our ability to deliver investment income in line with current expectations in 2023 and 2024 in aggregate.Management fees and o
24、ther fees and underlying FRE increased by 24 per cent.and 91 per cent.respectively compared to H1 2022 and profit before tax increased by 10 per cent.This performance was driven by income from recently raised funds in H1 2023 combined with carefully matching cost growth to progress in fundraising.We
25、 are well positioned to deliver performance in line with current expectations recognising volatility in the precise timing of completing exits in process which drives investment income splits between 2023 and early 2024.Commentary on fundraising marketsLong term tailwinds behind private markets rema
26、in very strong,but since March 2023 macro volatility has led to increased caution with a number of investors continuing to face allocation issues.The so-called denominator effect(falling stock market valuations mathematically increasing fund allocations to other asset classes)has been exacerbated by
27、 the relative outperformance of private assets over the last two years,whilst lower returns of capital from historic fund commitments have also constrained some LPs new commitments.With over 85 per cent.of the funds targeted capital of 7 billion now committed,the BE VII process is well on the way to
28、 completion and will round out in early 2024.Encouragingly,whilst some mature existing BE investors have faced allocation issues to date this has been compensated for by a range of investors with less mature programmes investing in BE VII including major new Limited Partners(“LPs”)from both Asia and
29、 EMEA.This significantly strengthens the firms investor base for the longer term.The BE VII process will be followed shortly by the BDC V fundraising which has already received significant LP interest reflecting the outstanding performance of our BDC funds in recent years.William JacksonChairman“Bot
30、h credit and equity funds performance continue to be strong.”Bridgepoint 2023 Interim Report3Investing in current market conditionsBridgepoint has been tested through previous cycles and called the autumn of this economic cycle early.As a result,the firm has constructed credit and equity portfolios
31、accordingly,focusing on niche sectors with significant tailwinds behind them.Our investment thesis is focused on growth middle market companies and deploys leverage prudently.This is reflected in our robust underlying fund performance with all funds on or ahead of performance plan.In particular,BE V
32、I and BDC III remain ahead of plan and top quartile in their latest respective benchmark vintages and are well positioned to deliver meaningful investment income for the Company in the medium term.As we look forward,it is worth noting that the PE market is witnessing a new pricing paradigm with the
33、end of low-cost debt in volume for the time being.As a result,the middle market,which does not typically use significant leverage,is currently the most active space with returns in 2023 driven by real growth and cash generation.Portfolio construction,pricing discipline and sector selection are criti
34、cal in the current market,as is a hands-on approach to value creation to driving value in portfolio companies.Bridgepoint continues to focus on sectors and niches identified by our thematic origination strategy doubling down on areas where we have real conviction and companies benefit from high qual
35、ity of earnings and strong net cash conversion.Once in the portfolio,value creation continues to be driven by international expansion,buy-and-build programmes and driving operational excellence from a balanced portfolio with low exposure to cyclical sectors and discretionary spend.Our Private Credit
36、 investment thesis for direct lending,also designed around the middle market,features first lien,secured,uni-tranche,floating rate credits.We are typically supporting European financial sponsors to make acquisitions in their private equity strategies where we are very often the sole lender.While our
37、 most recent fund,BDL III,was targeting 7 to 9 per cent.unlevered returns when launched,thanks to the increase in base rates since the beginning of last year,it is currently realising unlevered returns in low double digits with no realised losses in the strategy since inception.Importantly the credi
38、t quality of the portfolio provides significant comfort that this trend will continue despite the volatile macro environment.Private EquitySo far this year our Private Equity funds have committed 0.8 billion to six platform investments,and returned 0.2 billion to investors.BE VII has made good progr
39、ess with its new investment activity,acquiring Vivacy,a global personal healthcare company as well as agreeing to purchase Windar,a leading global specialist manufacturer of towers and foundations for onshore and offshore wind turbines.To date the fund has made 50 add on acquisitions of which 6 have
40、 been transformational.BDC III has continued to perform well with multiple add-on acquisitions agreed in H1 2023 and continuing to rank as one of Europes highest performing private equity funds for its vintage.BDC IV has now committed 69 per cent.of its primary fund capital,providing confidence that
41、 it is positioned to complete its investment period in 2024.The outlook for portfolio exits presents both challenges and opportunities.The macro environment is complex and buyers are more cautious but the expectation gap between buyers and sellers is narrowing.Selling assets today remains more chall
42、enging than in previous periods,but the value of growth remains at a premium in the current market.Safe strategic assets remain highly sought after.Embedded and portable leverage,where available,is also highly attractive to buyers.Middle market sized companies are also more attractive to large corpo
43、rates who dont want to bet the farm with large transactions in cautious times and 98 per cent.of Bridgepoint fund realisations over the last 20 years have been delivered via private transactions,so our funds are not reliant on the IPO market for returns.In that context,we have agreed two exits recen
44、tly both from BE III,Diaverum,a leading operator of private kidney dialysis clinics and DMC,a leading designer and manufacturer of connector technology systems for high-voltage power infrastructure.In particular,DMC was exited at an attractive EBITDA multiple,delivering a money multiple of 21.7 time
45、s.We expect to deliver further exits in the second half of the year with work on assets in BDC III,BE V and BE VI already underway.As a result,we have a good pipeline of potential exits in H2 2023 however in current market conditions there is the possibility of some movement in exits from 2023 into
46、2024.Chairmans statement William Jackson continuedBridgepoint 2023 Interim Report4Private CreditBridgepoint Credit enjoyed a strong first half of 2023.AUM reached 12.0 billion,an increase of 76 per cent.since Bridgepoint acquired EQT Credit.Bridgepoint Credit funds have now invested c.8.6 billion in
47、 over 200 companies since the acquisition.It is worth noting that the mix of credit capital has moved towards SMAs and other bespoke vehicles over time.This reflects the strength of our origination and the sophistication of the platform enabling us to provide credit investors with vehicles to match
48、their risk appetite and other investment criteria as an alternative to investing in our main funds.Overall,during 2023 credit strategies benefitted from more volatile lending markets and higher base rates.Bridgepoint Credit is using its disciplined process to build well diversified funds that delive
49、r attractive returns to investors whilst mitigating risks.Since inception our flagship Direct Lending funds have yet to record a loss on any lending exposure.Across the Direct Lending and Credit Opportunities strategies the team deployed around 1.7 billion of capital over the last year compared to r
50、ealisations of 0.6 billion.BDL III has now invested over 1.9 billion in 27 companies and with the fund 68 per cent.invested we have commenced preparations for BDL IV.BCO IV is now 67 per cent.deployed and fundraising for BCO V will commence within the next 12 months.CLO 4 closed in January 2023 and
51、we expect to close CLO 5 in Q3 2023.Business DevelopmentAs set out at the time of our IPO in July 2021 Bridgepoint remains committed to continuing to deepen and broaden its middle market investment platform to accelerate current organic growth through selective acquisition activity.As noted in March
52、,falling sector valuations have broadened the potential horizon for potential M&A opportunities and we are engaged in active discussions which we would expect to finalise positively or negatively by the year end.Bridgepoints day job is making good acquisitions.Not surprisingly,therefore,any acquisit
53、ion for the platform will have to meet the rigorous gatekeeping metrics which have been discussed in detail in prior company announcements.These include strong industrial logic,the ability to diversify the Groups income base,the need for a strong cultural fit and the ability for an acquisition to be
54、 accretive to short and medium term shareholder returns.Turning to our current platform,alongside a rigorous focus on efficiency and prudent cost control,the Company continues to invest in its operating resources in a controlled and focused manner.During the first half of the year we have strengthen
55、ed further our operating resource which drives portfolio value creation.We have also continued to expand our investor relations and solutions presence on the ground globally.In this regard we have recently made senior Investor Relations hires in the United States(replacing retirees)and we will be op
56、ening new Singapore and Seoul offices dedicated to investor services in Asia.By deepening our resource in the key area of Investor Relations and developing deeper regional coverage while deploying a number of software solutions to enable efficiency,the Company is well placed to support new products
57、and further business development.“The BE VII fundraise is well on the way to completion.”Bridgepoint 2023 Interim Report5Dividend I am pleased to confirm that the Company will be maintaining its progressive dividend policy this year and will pay an interim dividend of 4.4p per share in September.We
58、expect our final dividend to be not less than 4.4p per share.When combined with the capital return of ca.3.8 pence per share via share buyback in H1 2023,total capital return to shareholders in H1 2023 was more than double that in H1 2022,reflecting the Boards strong confidence in the prospects of t
59、he Company.OutlookBridgepoint is encouraged by the outlook for the full year and confirms full year guidance.Whilst some revenue recognition may be delayed by the revised BE VII timetable we expect this to be mitigated by careful cost control in the full year to December 2023.We also remain confiden
60、t in completing our targeted exits for H2 2023 which drive part of the Companys investment income.However,we recognise that the precise timing of exit processes are not directly within our own control and inevitably have some unpredictability in current markets.As a result,both fundraising and exits
61、 will be subject to external market conditions not materially deteriorating from today.Looking ahead,Bridgepoint benefits from having multiple avenues for both organic and M&A growth.The Company remains asset light,with less than 1 per cent.of AUM as investments,excluding consolidated CLOs,and toget
62、her with over 300 million of cash and discounted carried interest receivable represents around 38 per cent.of our current market capitalisation also providing material strength to reinforce our business growth strategy.More widely the alternative investment market continues to enjoy the prospect of
63、significant future tailwinds with portfolio rebalancing driving increased long-term allocations as new investors continue to enter the asset class.As a result,medium term market growth potential remains unchanged,offering a significant runway of future growth for our business.BE VII is now already l
64、arger than its predecessor and has attracted strong support from both new and existing investors.In particular,we have seen a significant acceleration of our strategy for geographic expansion of the investor base which creates a strong foundation for future fund cycles.With this market background dr
65、iving organic growth and with our long duration capital,strong balance sheet,asset light model,high and stable margins,strong cash generation and attractive dividend yield,Bridgepoints outlook remains attractive.This resilience was central to the Boards decision to commence a tactical share buyback
66、programme earlier in the year which is now more than 65 per plete.Looking forward,we expect market volatility and inflation pressures to continue in the near term and have positioned our investment activity accordingly.Bridgepoint will obviously not be immune to macroeconomic events,but we are excit
67、ed by the strategic growth prospects for the Group and the long term prospects for our sector as we continue to progress our business development plans and remain confident in the Companys ability to deliver attractive returns for both our fund investors and our shareholders alike.William JacksonCha
68、irmanChairmans statement William Jackson continued“We are excited by the strategic growth prospects for the Group.”Bridgepoint 2023 Interim Report654.3136.075.560.584.233.450.82021*2022*H1 202355.6139.278.061.2112.860.852.02021*2022*H1 2023KPIs:tracking our performanceDescriptionA measure of profita
69、bility prior to depreciation of property leases,amortisation of intangible assets,the cost of financing and taxationDefinitionSee page 19 for a detailed definitionDescriptionEBITDA excluding expenses related to the IPO,the acquisition of the EQT Credit business and costs relating to strategic projec
70、ts,including potential acquisitions,which were not incurred in the normal course of businessDefinitionSee page 19 for a detailed definitionTotal AUM (bn)Fee Paying AUM(bn)EBITDA(m)Underlying EBITDA(m)DescriptionThe total value of assets held in the Groups funds plus the value of capital which has be
71、en committed but not yet drawnDefinitionSee page 20 for a detailed definitionDescriptionThe amount of capital held in funds,including Collateralised Loan Obligations(CLOs),which the Group manages on behalf of investors and on which it charges feesDefinitionSee page 20 for a detailed definition24.6 1
72、9.823.419.317.72021*2022*H1 202339.537.138.028.532.920212022H1 202339.5bn54.3m24.6bn55.6m*2021 and H1 2022 Fee Paying AUM has been restated to include CLO AUM*2021 and 2022 Underlying EBITDA has been restated to exclude foreign exchange gains/losses*2021 and 2022 EBITDA has been restated to exclude
73、non-operating foreign exchange gains/lossesH2H1H2H1H2H1H2H1Bridgepoint 2023 Interim Report7DescriptionA measure of profit after expenses,depreciation and amortisation,and financing,but before tax,and excluding exceptional items and amortisation of intangiblesDefinitionSee page 19 for definitionDescr
74、iptionA statutory measure of profit after expenses,depreciation and amortisation and financing but before taxationDefinitionProfit for the year attributable to equity shareholders before taxationUnderlying FRE(m)Underlying FRE margin(%)Underlying profit before tax(m)Profit before tax(m)DescriptionUn
75、derlying FRE margin is a measure of underlying profitability,excluding investment incomeDefinitionSee page 19 for definitionGuidance45-50%in the longer termDescriptionFee Related Earnings(“FRE”)is a measure of underlying profitability,excluding investment incomeDefinitionSee page 19 for definition42
76、.974.351.822.547.420.926.52021*2022*H1 202334.322.236.727.719.32021*2022*H1 202353.1127.479.148.362.622.240.420212022H1 202350.0120.051.968.190.548.242.320212022H1 202350.0m53.1m34.3%42.9m*2021 and 2022 Underlying FRE has been restated to exclude non-operating foreign exchange gains/losses*2021 and
77、2022 Underlying FRE margin has been restated to exclude non-operating foreign exchange gains/lossesH2H1H2H1H2H1H2H1KPIs:tracking our performance continuedBridgepoint 2023 Interim Report8The Groups financial results to 30 June 2023 reflect the step up in profitability from the latest flagship equity
78、fund BE VII and prudent cost control.Underlying fee related earnings of 42.9 million compares to 22.5 million in the first half of 2022 which is driven by increased management fees of 124.6 million(including the recognition ofonly 2.6 million of late fees relating to BE VII)compared to 100.9 million
79、 in the first half of 2022.The increase of 24%reflects the start of fees from BE VII and growth of fee earning AUM in our Credit business with good momentum on deployment to take advantage of the higher interest rate environment.Thisstep up in fees deliveredan underlying FRE margin of 34%,in line wi
80、th ourshort-term guidance.Total operating income of 137.8 million,a reduction of 2.3 million compared tothe comparative period,have been impacted by lower investment income of 12.7 million,due to modest changesto fund valuations and a comparatively slower period for exits.As previously advised,inves
81、tment income in 2023 is expected to be heavily weighted towards the second half driven by exit activity.In 2023,we now expect investment income to be c.15%of total income versus previous guidance of c.20%,with a corresponding catch up in 2024.Costs(excluding exceptional expenses)of 82.2 million have
82、 increased modestly since the first half of 2022,largely reflecting higher premises costs of our new London office,but flat personnel expenses reflecting a deliberate phasing of investment team hires to match fundraising progress and timing of replacement hires for natural attrition.In January,we an
83、nounced a 50 million share buyback programme,to reflectthe confidence we have in the resilience of our business.Weare more than 65 per cent of the way through this programme at 30 June 2023.The Groups balance sheet remains well capitalised.At 30 June 2023,the Group had a net cash position of 258.4 m
84、illion(excluding cash within consolidated CLOs)and had a renewed andlarger banking facility of 200 million,which is undrawn.Furthermore,the Group holds investments in funds of 356.8 million,including the Groups exposure to CLO notes,andcarried interest at a discounted value of 47.1 million,which pro
85、vides opportunity for further future profitability and conversion to cash in the medium-term.Adam JonesGroup Chief Financial Officer&Chief Operating OfficerCFO statement Guidance Fundraising:Continued progress on BE VII which is expected to hold its final close in early 2024.The target remains 7bn.B
86、DC V,BDL IV and BCO V expected to begin fundraising within the next 12 months.Investment income:Continue to expect investment income torepresent around 20%of total income in the short term.In2023,we now expect investment income to be c.15%,with acatch up in 2024.Cost growth:Some inflationary pressur
87、es on costs in the near term and more modest growth in headcount and personnel costs over medium term.Actual cost growth in H1 was below high single digit guidance despite inflationary pressures being evident.This reflects deliberate phasing of investment team hires to match fundraising progress.FRE
88、 margin:Short term guidance remains unchanged at 30-35%.2024 expected to be slightly below the bottom of the short-term guidance,reflecting the usual margin profile of a PE cycle where continued successful divestments in 2023 and 2024 will,as expected,reduce fees recognised on invested capital ahead
89、 of BDC V generating fees from January 2025.Credit deployment:Expect to deploy at least 1bn of incremental FPAUM each year in Credit in the short term.Tax:Subject to any changes in the UK tax code,we expect our 2023 effective tax rate to be at the top end of the 5%-10%long term range.Bridgepoint 202
90、3 Interim Report9CFO statement continuedSummaryFinancial summarySix months ended 30 June 2023Six months ended 30 June2022Six months ended 31 December 2022Change H1 23 vs H1 22 (%)Change H1 23 vs H2 22(%)Total AUM(bn)39.537.138.06.5%3.9%Fee Paying AUM(bn)24.619.823.424.2%5.1%Management fee margin on
91、Fee Paying AUM(%)1.16%1.17%1.16%(0.0)ppt(0.01)ppt Management and other fees(m)124.6100.9140.623.5%(11.4)%Investment income(m)12.738.726.2(67.2)%(51.5)%Total operating income(m)137.8140.1167.3(1.6)%(17.6)%Total expenses(excluding exceptional items)*(m)(82.2)(78.9)(89.3)4.2%(8.0)%Underlying EBITDA*(m)
92、55.661.278.0(9.2)%(28.7)%Underlying EBITDA margin*(%)40.3%43.7%46.6%(3.3)ppt(6.3)pptUnderlying FRE*(m)42.922.551.890.7%(17.2)%Underlying FRE margin*(%)34.3%22.2%36.7%12.1ppt(2.4)pptUnderlying profit before tax(m)50.051.968.1(3.7)%(26.6)%Reported profit before tax(m)53.148.379.1 9.9%(32.9)%Reported p
93、rofit after tax(m)48.244.975.77.3%(36.3)%Reported pro forma basic and diluted EPS(pence)5.95.59.37.3%(36.3)%Underlying pro forma basic and diluted EPS(pence)5.66.08.0(6.6)%(30.0)%*2022 total expenses(excluding exceptional items),underlying EBITDA,underlying EBITDA margin,underlying FRE and underlyin
94、g FRE margin has been restated to exclude non-operating foreign exchange gains/losses.Throughout the course of this section reference is made to adjusted measures which the Company considers to be alternative performance measures(“APMs”)or key performance indicators(“KPIs”).These are not defined or
95、recognised under International Financial Reporting Standards(“IFRS”)but are used by the Directors and management to analyse the business and financial performance,track the Groups progress and help develop long-term strategic plans.Pages 19 and 20 set out definitions of each of the APMs used within
96、the CFO Statement and how they can be reconciled back to the condensed consolidated financial statements.The analysis below includes two periods for comparison.First,the six months ended 30 June 2022,which is required to be included within the condensed financial information.In addition,the six mont
97、hs ended 31 December 2022 has been included as it provides a helpful comparison to the performance in the six months to 30 June 2023 because of underlying drivers such as invested capital and headcount.Bridgepoint 2023 Interim Report10FundraisingIn 2023 to date,fundraising for BE VII continued stead
98、ily and now amounts to 6 billion of commitments(including associated vehicles)despite continued uncertainty in the fundraising market.We now expect the fund to admit final investors in early 2024.BDL III concluded fundraising in May.In total,including separately managed accounts,the strategy has rai
99、sed over 3.4 billion of investable capital since its launch in 2021.Fundraising is also underway for BG II and BCO IV,with the latter expected to conclude fundraising in the second half of the year.CLO 5 is currently under construction and is expected to launch during the third quarter.Fundraising f
100、or BDC V,BDL IV and BCO V is expected to commence within the next twelve months.Total AUM development during the period billionPrivate equityCreditTotal30 June 202226.710.437.131 December 202226.811.238.030 June 202327.512.039.5Total AUM at 30 June 2023 was 39.5 billion compared to 38.0 billion at t
101、he end of the 2022,of which 27.5 billion is Private Equity and 12.0 billion in Credit.The 3.9%increase since 31 December 2022 is primarily due to additional commitments raised for BEVII.Total Fee Paying AUM development during the period billionPrivate equityCreditTotal30 June 202213.36.519.831 Decem
102、ber 202216.47.023.430 June 202316.97.724.6Fee Paying AUM at 30 June 2023 was 24.6 billion compared to 23.4 billion at the end of 2022,with the 5.1%increase due to additional commitments raised for BE VII becoming fee paying and an increase in invested capital in our Credit strategies.In aggregate ou
103、r Credit business is expected to add at least 1 billion of Fee Paying AUM growth during 2023,including the launch of new CLOs.Adam JonesGroup Chief Financial Officer&Chief Operating Officer Bridgepoint 2023 Interim Report11CFO statement continuedAbbreviated income statement millionSix months ended 3
104、0 June 2023Six months ended 30 June 2022Six months ended 31 December 2022Change H1 23 vs H1 22 (%)Change H1 23 vs H2 22 (%)Management and other fees124.6100.9140.623.5%(11.4)%Investment income 12.738.726.2(67.2)%(51.5)%Total operating income137.8 140.1167.3(1.6)%(17.6)%Total expenses*(83.5)(79.6)(91
105、.8)4.9%(9.0)%Total expenses(excluding exceptional expenses)*(82.2)(78.9)(89.3)4.2%(8.0)%EBITDA*54.360.575.5(10.2)%(28.1)%Underlying EBITDA*55.661.278.0(9.2)%(28.7)%Underlying FRE*42.922.551.890.7%(17.2)%Depreciation and amortisation(8.6)(9.1)(9.2)(5.5)%(6.5)%Net other income/(expense)*7.4(3.1)12.8(3
106、38.7)%(42.2)%Net other income/(expense)(excluding exceptional net finance expense)*1.5(1.7)(2.2)(188.2)%(168.2)%Underlying profit before tax50.051.968.1(3.7)%(26.6)%Reported profit before tax 53.148.379.19.9%(32.9)%Tax(4.9)(3.4)(3.4)44.1%44.1%Reported profit after tax48.244.975.77.3%(36.3)%*2022 tot
107、al expenses,total expenses(excluding exceptional expenses),EBITDA,underlying EBITDA,underlying FRE,underlying operating profit and reported operating profit has been restated to exclude non-operating foreign exchange gains/losses.*2022 net other income/(expense)and net other income/(expense)(excludi
108、ng exceptional net finance expense)has been restated to include non-operating foreign exchange gains/losses.The Groups consolidated income statement has two key components:the first is the income generated from management and other fees,which are from long-term fund management contracts.The second c
109、omponent is the variable income from investments in funds and carried interest.Management fee income plus other operating income less costs is expressed as Fee Related Earnings(“FRE”).Underlying FRE excludes exceptional expenses and bonuses linked to investment returns.Profits from co-investment and
110、 carried interest together with FRE form the EBITDA of the business.Exceptional items are items of income or expense that are material by size or nature and are not considered to be incurred in the normal course of business.Exceptional items are classified as“exceptional”within the Group Consolidate
111、d Statement of Profit or Loss are disclosed separately to give a clearer presentation of the Groups results.In the six month periods ended 30 June 2023,30 June 2022 and 31 December 2022,exceptional expenses were recognised relating to the personnel costs in relation to the acquisition of the EQT Cre
112、dit business and costs incurred in relation to potential acquisitions.Underlying profit before tax excludes the aforementioned expenses and also certain non-operating other income and expenses which have also been classified as exceptional.Exceptional net other income primarily includes the reductio
113、n in the estimated deferred contingent consideration payable to EQT AB in the six months ended 30 June 2023 and six months ended 31 December 2022 for the acquisition of the EQT Credit business,which is determined by the outcome of certain fundraising that falls within the definitions in the transact
114、ion documents(rather than total fundraising).Further explanation is included within note 6(a)of the interim financial statements(see page 32).Bridgepoint 2023 Interim Report12Total operating income millionSix months ended 30 June 2023Six months ended 30 June2022Six months ended 31 December 2022Chang
115、e H1 23 vs H1 22 (%)Change H1 23 vs H2 22 (%)Management and other fees124.6100.9140.623.5%(11.4)%Carried interest6.414.010.2(54.3)%(37.3)%Fair value remeasurement of investments6.324.716.0(74.5)%(60.6)%Other operating income0.50.50.50.0%0.0%Total operating income137.8140.1167.3(1.6)%(17.6)%Total ope
116、rating income was 137.8 million for the first six months ended 30 June 2023 compared with 140.1 million for the comparative period in 2022 and 167.3 million in the six months ended 31 December 2022.Management and other fees increased by 23.7 million,or 24%,from 100.9 million for the six months ended
117、 30 June 2022.Fees for the six months ended 30 June 2023 were 16.0 million lower than the six month period ended 31 December 2022.Management and other fees by reporting segment is split out below:millionSix months ended 30 June 2023Six months ended 30 June 2022Six months ended 31 December 2022Change
118、 H1 23 vs H1 22(%)Change H1 23 vs H2 22(%)Private equity95.876.7 111.1 24.9%(13.8)%Credit27.022.728.118.9%(3.9)%Central1.81.51.420.0%28.6%Management and other fees124.6100.9140.6 23.5%(11.4)%The increase in fees compared to the six month period to 30 June 2022 is principally due to the start of fees
119、 from BE VII plus fees on increased levels of invested capital in BDL III and BCO IV,and related separately managed accounts,in the Credit business.These increases are partially offset by reduced fees on older funds,which are in their divestment phase,where fees are based upon the remaining invested
120、 capital and reduce when investments are sold.Fees have reduced compared to the six months to 31 December 2023,due to the impact of late fees for BE VII for the stub period from May 2022 and the impact of a reduction of fees on older funds.Taken together,investment returns from carried interest and
121、co-investments was 12.7 million compared to 38.7 million in the six month period ended 30 June 2022 and 26.2 million in the six month period ended 31 December 2022 due to modest changes to fund valuations and a slower period for exits.Operating expenses millionSix months ended 30 June 2023Six months
122、 ended 30 June2022Six months ended 31 December 2022Change H1 23 vs H1 22(%)Change H1 23 vs H2 22 (%)Personnel expenses(61.0)(60.9)(64.9)0.2%(6.0)%Other operating expenses(21.2)(18.0)(24.4)17.8%(13.1)%Total expenses before exceptional expenses(82.2)(78.9)(89.3)4.2%(8.0)%Exceptional expenses(1.3)(0.7)
123、(2.5)85.7%(48.0)%Total expenses(83.5)(79.6)(91.8)4.9%(9.0)%Personnel expenses(excluding exceptional expenses)of 61.0 million were flat compared to the period ended 30 June 2022,reflecting timing of replacement hires for natural attrition and a deliberate phasing of investment team hires to match fun
124、draising progress.Personnel expenses were 3.9 million lower than the six months ending 31 December 2022,reflecting a lower bonus accrual associated with lower investment income recognised in the period.The final annual bonus for 2023 will reflect the achievement of fundraising and exit targets.Perso
125、nnel expenses(excluding exceptional expenses)as a percentage of total operating income were 44%for the six month period ended 30 June 2023,compared to 43%for the six months ended 30 June 2022 and 39%for the six months ended 31 December 2022.Bridgepoint 2023 Interim Report13CFO statement continuedOth
126、er operating expenses(excluding exceptional expenses)of 21.2 million are 3.2 million higher than the six months to 30 June 2022 due to the operating costs on the Groups new London headquarters,5 Marble Arch,and fundraising costs associated with BE VII.In comparison to the six month period ended 31 D
127、ecember,other operating expenses have decreased by 3.2 million due to a fall in professional fees incurred,which related to amounts paid in relation to the expansion of the Groups regulatory footprint and higher than normal premises costs during the second half of 2022 on the transfer to 5 Marble Ar
128、ch.Other operating expenses(excluding exceptional expenses)as a percentage of total operating income are 15%which compares to 13%in the equivalent period in 2022 and 15%for the six months ended 31 December 2022.Foreign exchange losses of 0.3 million have been included within other income/expenses on
129、 the basis that they relate predominantly to non-operating activity.The comparative periods have been restated accordingly(0.6 million gain for the six months ended 30 June 2022 and 0.5 million gain for the six months ended 31 December 2022).EBITDA millionSix months ended 30 June 2023Six months ende
130、d 30 June2022*Six months ended 31 December 2022*Change H1 23 vs H1 22(%)Change H1 23 vs H2 22(%)Underlying EBITDA55.661.278.0(9.2)%(28.7)%Exceptional expenses within EBITDA(1.3)(0.7)(2.5)85.7%(48.0)%EBITDA54.360.575.5(10.2)%(28.1)%*2022 EBITDA and underlying EBITDA have been restated to exclude non-
131、operating foreign exchange gains/(losses).Underlying EBITDA reduced to 55.6 million in the six months ended 30 June 2023,excluding exceptional expenses.Whilst management and other fees were higher than the comparative period in 2022,investment returns were lower.Investment returns were also a featur
132、e of the lower underlying EBITDA compared to the six months ended 31 December 2022.Depreciation and amortisation millionSix months ended 30 June 2023Six months ended 30 June2022Six months ended 31 December 2022Change H1 23 vs H2 22 (%)Change H1 23 vs H1 22 (%)Depreciation(7.1)(7.6)(7.7)(6.6)%(7.8)%A
133、mortisation of intangible assets(1.5)(1.5)(1.5)0.0%0.0%Total depreciation and amortisation(8.6)(9.1)(9.2)(5.5)%(6.5)%Depreciation and amortisation decreased from 9.1 million in the six months to 30 June 2022 to 8.6 million in the six months ended 30 June 2023.Compared to the six months ended 31 Dece
134、mber 2022,the expense decreased by 0.6 million.This reduction is due to the cessation of legacy leases in London following the move to 5 Marble Arch.The amortisation of intangibles acquired with the EQT Credit business(fund customer relationships)of 1.5 million have been excluded from the adjusted p
135、rofitability measures for all periods in order to enable a clearer analysis of underlying profitability.Bridgepoint 2023 Interim Report14Other income and expenses millionSix months ended 30 June 2023Six months ended 30 June 2022*Six months ended 31 December 2022*Change H1 23 vs H1 22 (%)Change H1 23
136、 vs H2 22 (%)Net other income/(expense),excluding exceptional items1.5(1.7)(2.2)(188.2)%(168.2)%Exceptional net other income/(expense)5.9(1.4)15.0(521.4)%(60.7)%Net other income/(expense),including exceptional items7.4(3.1)12.8(338.7)%(42.2)%*2022 net other income/(expense)has been restated to inclu
137、de non-operating foreign exchange gains/(losses).Net other income/(expense),excluding exceptional items,was 1.5 million of income compared to an expense of 1.7 million for the six months ended 30 June 2022 and an expense of 2.2 million for the six months ended 31 December 2022.These movements are pr
138、incipally due to increased interest income from cash on deposit.Exceptional net other income primarily includes the reduction in the estimated deferred contingent consideration payable to EQT AB for the acquisition of the EQT Credit business,which is determined by the outcome of certain fundraising
139、that falls within the definitions in the transaction documents(rather than total fundraising for the Private Credit strategy).Further explanation is included within note 6(a)of the interim financial statements(see page 32).The income is partially offset by the unwind of the discount on the correspon
140、ding payable.Profit before tax millionSix months ended 30 June 2023Six months ended 30 June 2022Six months ended 31 December 2022Change H1 23 vs H1 22 (%)Change H1 23 vs H2 22 (%)Underlying profit before tax50.051.968.1(3.7)%(26.6)%Exceptional expenses(1.3)(0.7)(2.5)85.7%(48.0)%Exceptional net other
141、 income/(expense)5.9(1.4)15.0(521.4)%(60.7)%Amortisation of intangible assets(1.5)(1.5)(1.5)0.0%0.0%Reported profit before tax53.148.379.19.9%(32.9)%Underlying profit before tax margin36.3%37.0%40.7%(0.7)%(3.7)%Underlying profit before tax of 50.0 million represents a 36.3%margin,which compares 37.0
142、%for the six months ended 30 June 2022 and 40.7%for the six months ended 31 December 2022.Underlying profit before tax is 1.9 million lower than the six months ended 30 June 2022 and 18.1 million lower than the six months ended 31 December 2022 due to lower investment returns.Reported profit before
143、tax of 53.1 million increased by 4.8 million from 48.3 million in the six months ended 30 June 2022 and compares to 79.1 million in the six months ended 31 December 2022.Tax millionSix months ended 30 June 2023Six months ended 30 June 2022Six months ended 31 December 2022Change H1 23 vs H1 22 (%)Cha
144、nge H1 23 vs H2 22 (%)Tax(4.9)(3.4)(3.4)44.1%44.1%Profit after tax48.244.975.77.3%(36.3)%Tax of 4.9 million represents an effective rate of 9.2%compared to 7.0%in the six months ended 30 June 2022 and 5.4%for the full year ended 31 December 2022.The Group has a lower effective tax rate than the UK s
145、tatutory rate.This is largely driven by timing differences on the taxation of management fee income and significant tax loss carry-forwards in the UK where certain forms of income are not subject to UK corporation tax.Profit after tax for the six month period ended 30 June 2023 was 48.2 million,whic
146、h compares to 44.9 million for the six month period to 30 June 2022 and 75.7 million for the six month period to 31 December 2022,reflecting the reduced EBITDA from investment income.Bridgepoint 2023 Interim Report15CFO statement continuedEarnings per share and dividend per share penceSix months end
147、ed 30 June 2023Six months ended 30 June 2022Six months ended 31 December 2022Change H1 23 vs H1 22 (%)Change H1 23 vs H2 22(%)Reported pro forma earnings per share5.95.59.37.3%(36.3)%Underlying pro forma earnings per share5.66.08.0(6.6)%(30.0)%Pro forma interim dividend per share4.44.04.09.0%9.0%Rep
148、orted pro forma earnings per share increased by 0.4 pence to 5.9 pence per share compared with the six month period ended 30 June 2022,which is reflective of the higher statutory profit after tax,whereas underlying pro forma earnings per share fell share fell by 0.4 pence per share,reflecting the sl
149、ight decline in underlying earnings,which excludes the exceptional net other income recognised in the six months ended 30 June 2023.For the year ended 31 December 2022,the Directors proposed a final dividend of 4.0 pence per share.The cost of the dividend was 32.7 million.The Directors have announce
150、d an interim dividend of 4.4 pence per share,in respect of the first half of 2023 to be paid in September 2023.This equates to an estimated cost of 35.7 million based on the number of shares in issue at 30 June 2023,but the actual cost will depend upon the number of shares in issue when the dividend
151、 is paid.Consolidated balance sheetSummarised consolidated balance sheet millionAs at30 June 2023As at 31 December 2022Change(%)AssetsNon-current assets565.2540.04.7%Current assets1,376.81,247.810.3%Total Assets1,942.01,787.88.6%LiabilitiesNon-current liabilities962.5757.127.1%Current liabilities220
152、.0258.0(14.7)%Total Liabilities1,182.51,015.116.5%Net Assets759.5 772.7(1.7)%EquityShare capital and premium289.9289.90.0%Other reserves10.89.118.7%Retained earnings458.8473.7(3.1%)Total Equity759.5772.7(1.7%)Net assets principally comprise cash and term deposits,the fair value of investments and ca
153、rried interest receivable from private equity and credit funds and goodwill arising from the acquisition of the EQT Credit business.The Groups total assets and liabilities increased by 154.2 million and 167.4 million respectively due to an increase in CLO assets and liabilities consolidated as at 30
154、 June 2023,which now includes CLO 4,following its format launch.This increase is offset by bonuses and dividends paid and the cash paid for the share buy backs in the period.Non-current assets increased by 4.7%from 540.0 million at 31 December 2022 to 565.2 million at 30 June 2023.Current assets inc
155、reased by 10.3%from 1,247.8 million at 31 December 2022 to 1,376.8 million.The changes in non-current and current assets are primarily due to the impact of the build up of the CLO 4 portfolio following its formal launch.Bridgepoint 2023 Interim Report16At 30 June 2023,the Group had cash of 258.4 mil
156、lion(including amounts in term deposits,but excluding cash belonging to consolidated CLOs).The Group had no debt,but has the use of a new Revolving Credit Facility for up to 200 million for a period of three years until May 2026.Non-current liabilities increased from 757.1 million at 31 December 202
157、2 to 962.5 million at 30 June 2022,primarily due to consolidation of the additional CLO vehicle.Current liabilities decreased by 14.7%from 258.0 million at 31 December 2022 to 220.0 million at 30 June 2023,primarily due to the payment of annual bonuses in March 2023.Excluding the impact of consolida
158、ted CLOs,non-current liabilities increased by 3%due to an increase in deferred tax liability.Total equity reduced by 1.7%due to the impact of the final dividend for 2022 and the Share Buyback Programme,offset by profits.The consolidated balance sheet includes the assets and liabilities of certain CL
159、Os which are required under IFRS to be presented gross on the balance sheet.This could distort how a reader of the financial statements interprets the balance sheet of the Group.A summarised consolidated balance sheet,excluding third-party CLO assets and liabilities,is included below.The Groups maxi
160、mum exposure to loss associated with its interest in the CLOs is limited to its investment in the relevant CLOs which at 30 June 2023 was 75.0 million and at 31 December 2022 was 60.3 million.Summarised consolidated balance sheet(excluding third party CLO assets and liabilities)1 millionAs at30 June
161、 2023As at 31 December 2022Change(%)Total Assets(excluding third-party CLO assets)1,023.31,067.1(4.1)%Total Liabilities(excluding third-party CLO liabilities)263.8294.4(10.4)%Net Assets(excluding third-party CLO assets and liabilities)759.5772.7(1.7)%1.A full consolidated balance sheet excluding thi
162、rd-party CLO assets and liabilities is included on page 45.Bridgepoint 2023 Interim Report17Consolidated cash flowsSummarised consolidated cash flow statement millionSix months ended30 June 2023Six months ended 30 June 2022 Change(%)Net cash flows from operating activities74.9(33.7)(322.3)%Net cash
163、flows from investing activities(133.8)(65.5)104.3%Net cash flows from financing activities129.0(38.2)(437.7)%Net(decrease)/increase in cash and cash equivalents70.1(137.4)(151.0)%Total cash and cash equivalents at beginning of the period220.6327.315.6%Effect of exchange rate changes(1.6)1.0(260.0)%T
164、otal cash and cash equivalents at the end of the period289.1190.951.4%of which:cash and cash equivalents at the end of the period(for use within the Group)258.4139.385.5%of which:CLO cash(restricted for use within relevant CLO)30.751.6(40.5)%Total cash and cash equivalents at the end of the period28
165、9.1190.951.4%Net cash flows from operating activities for the six months ended 30 June 2023 was an inflow of 74.9 million.The inflow was due to the receipt of deferred proceeds from the sale of the Groups investment in Bridgepoint Credit II,the conversion of FRE and positive net working capital move
166、ments offset against payment of annual bonuses in March 2023.Net cash flows from investing activities,including carried interest and investment income proceeds,is driven by the timing of investments and divestments by the underlying Bridgepoint funds.Net outflows from investments in the six months e
167、nded 30 June 2023 included the impact of the launch of CLO 4,which is consolidated,and resulted in a cash outflow of 204.4 million.Net investment into Bridgepoint funds as a co-investor and other investors resulted in a cash outflow of 30.4 million.For the six months ended 30 June 2023 cash inflows
168、from investing activities also include a receipt of 100m redeemed from cash held in term deposits with an original maturity of more than three months.Net cash inflows from financing activities for the six months ended 30 June 2023 of 129.0 million primarily relate to net inflow of CLO cash from inve
169、stors in CLO 4(which is consolidated)of 185.2m,offset by dividends paid to shareholders,as well as payments to acquire shares as part of the Share Buyback Programme.At 30 June 2023 the Group had 30.7 million of consolidated CLO cash which was held by the consolidated CLO vehicles,legally ringfenced
170、and not available for use by the Group.The consolidated cash flow statement includes the gross cash inflows and outflows for the period to,and cash held at 30 June 2023 for those CLOs which are required to be consolidated.This could distort how a reader of the financial statements interprets the cas
171、h flows of the Group,therefore a cash flow statement without the consolidated CLO vehicles is presented below.Summarised consolidated cash flow statement(excluding cash flows relating to consolidated CLOs)1 millionSix months ended 30 June 2023Six months ended 30 June2022Change(%)Net cash flows from
172、operating activities(excluding consolidated CLOs)74.9(33.7)(322.3)%Net cash flows from investing activities(excluding consolidated CLOs)54.9(117.3)(146.8)%Net cash flows from financing activities(excluding consolidated CLOs)(66.8)(33.8)97.6%Net increase in cash and cash equivalents(excluding consoli
173、dated CLOs)63.0(184.8)(134.1)%Cash and cash equivalents at beginning of the period(excluding consolidated CLOs)196.0323.1(39.3)%Effect of exchange rate changes on cash and cash equivalents(excluding consolidated CLOs)(0.6)1.0(160.0)%Cash and cash equivalents at the end of the period(excluding consol
174、idated CLOs)258.4139.385.5%Add back:investment in term deposits with original maturities of more than three months100.0(100.0)%Net cash at the end of the period(excluding consolidated CLOs)258.4239.38.0%1A full condensed consolidated cash flow statement excluding third-party CLO assets and liabiliti
175、es is included on page 46.CFO statement continuedBridgepoint 2023 Interim Report18Alternative Performance Measures(APMs)The use of APMsThis interim report includes several measures which are not defined or recognised under IFRS,including financial and operating measures relating to the Group which t
176、he Group considers to be APMs.These are reconciled to the IFRS results for the six month period in the table below.EBITDAEarnings before interest,taxes,depreciation and amortisation.It is calculated by reference to total operating income and deducting from it,or adding to it,as applicable,personnel
177、expenses and other expenses.Underlying EBITDACalculated by excluding exceptional items from EBITDA.Exceptional items are items of income or expense that are material by size and/or nature,are not considered to be incurred in the normal course of business and are not expected to reoccur.A breakdown i
178、s included within note 4 to the condensed consolidated financial statements.millionSix months ended 30 June 2023Six months ended 30 June 2022*EBITDA54.360.5Add back:exceptional items1.30.7Underlying EBITDA55.661.2Underlying EBITDA marginUnderlying EBITDA as a percentage of total operating income.Und
179、erlying FRE Underlying EBITDA less carried interest and income from the fair value remeasurement of investments and adding back the cost of bonuses linked to investment profits.millionSix months ended 30 June 2023Six months ended 30 June 2022*Underlying EBITDA55.661.2Less:carried interest and income
180、 from fair value of investments(12.7)(38.7)Add back:investment linked bonusesUnderlying FRE42.922.5Underlying FRE marginUnderlying FRE as a percentage of total operating income,excluding carried interest and income from the fair value remeasurement of investments.Underlying profit before taxCalculat
181、ed by excluding exceptional items and the amortisation of intangible assets from within profit before tax.Underlying profit before tax(m)Six months ended 30 June 2023Six months ended 30 June 2022Profit before tax53.148.3Add back:exceptional items within EBITDA1.30.7Add back:amortisation of intangibl
182、e assets1.51.5Less/add-back:exceptional net other income/(expense)(5.9)1.4Total underlying profit before tax50.051.9*2022 EBITDA and FRE have been restated to exclude non-operating foreign exchange gains/losses.Bridgepoint 2023 Interim Report19Underlying profit before tax marginUnderlying profit bef
183、ore tax as a percentage of total operating income.Underlying profit after taxCalculated by excluding exceptional items and the amortisation of intangible assets from within profit before tax.Underlying profit after tax marginUnderlying profit after tax as a percentage of total operating income.Under
184、lying pro forma basic and diluted earnings per shareCalculated by dividing underlying profit after tax by the number of shares in issue as at 30 June 2023 including the impact of the Share Buyback Programme.millionSix months ended 30 June 2023Six months ended 30 June 2022Profit after tax48.244.9Add
185、back:exceptional items within EBITDA1.30.7Add back:amortisation of intangible assets1.51.5Less/add back:exceptional net other income/(expense)(5.9)1.4Add back:tax0.2Total underlying profit after tax45.348.5Pro forma number of shares(m)810.3810.3Underlying pro forma basic and diluted EPS(pence)5.66.0
186、Fee Paying AUMAssets under management upon which management fees are charged by the Group,including CLOs.For all funds with private equity strategies and the Bridgepoint Credit Opportunities funds I to III,Fee Paying AUM is either based on total commitments(during the commitment period)or on net inv
187、ested capital(normally during the post-commitment period).For the Bridgepoint Direct Lending funds,Bridgepoint Syndicated Debt funds and Bridgepoint Credit Opportunities IV and expected future funds,Fee Paying AUM is based on net invested capital throughout the life of the fund.Credit fee paying AUM
188、 includes separately managed accounts(SMAs)relating to the direct lending and credit opportunities strategies.Total AUMThe total value of unrealised assets as of the relevant date(as determined pursuant to the latest quarterly or semi-annual valuation for each Bridgepoint Fund conducted by the Group
189、)plus undrawn commitments managed by the Group,inclusive of SMAs and co-investment vehicles.The valuations for Total AUM come from the Groups valuations of the investments of the Bridgepoint funds.Management fee margin on Fee Paying AUMThe underlying management fee rate in the Bridgepoint funds,excl
190、uding co-investment vehicles,calculated as the weighted average management fee rate for all Bridgepoint funds contributing to Fee Paying AUM as at the end of the accounting period.Alternative Performance Measures(APMs)continuedBridgepoint 2023 Interim Report20Principal risksThe Group believes that r
191、isk management is a fundamental part of robust corporate governance and our ongoing success.Details of the Groups response to risk management is set out within pages 78 to 83 of the 2022 Annual Report and Accounts,which is available in the shareholder section of the Bridgepoint Group plc website:bri
192、dgepoint.euThe principal risks within the 2022 Annual Report and Accounts include:fundraising challenges,law and regulation,changes in macroeconomic environment,fund under-performance,decreased pace or size of investments made by Bridgepoint funds,personnel and key people,information technology and
193、cyber security,and third-party service providers.The directors do not consider there to have been any material changes to the principal risks since the 2022 Annual Report and Accounts were published.The principal risks and uncertainties to which the Group will be exposed in the second half of 2023 a
194、re expected to be substantially the same as those described in the 2022 Annual Report and Accounts.DirectorsThe directors of Bridgepoint Group plc at 25 July 2023 are:William Jackson Archie Norman Adam Jones Angeles Garcia-Poveda Carolyn McCall Tim Score Cyrus TaraporevalaStatement of directors resp
195、onsibilitiesThe directors confirm that,to the best of their knowledge,the interim condensed consolidated financial statements:Have been prepared in accordance with UK-adopted International Accounting Standard 34“Interim Financial Reporting”,and give a true and fair view of the assets,liabilities,fin
196、ancial position and profit of the Group;Include a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.7,namely important events that have occurred during the first six months of the financial period and their impact on the interim financial statements,as well as
197、a description of the principal risks and uncertainties for the remaining six months of the financial year;and Include,as required by Disclosure Guidance and Transparency Rule 4.2.8,a fair review of material related party transactions that have taken place in the first six months of the financial per
198、iod and any material changes to the related party transactions described in the last Annual Report and Accounts.On behalf of the BoardAdam JonesGroup Chief Financial Officer&Chief Operating Officer25 July 2023Required disclosuresBridgepoint 2023 Interim Report21ConclusionWe have been engaged by Brid
199、gepoint Group plc(the“Company”)to review the financial information for the six months ended 30 June 2023 which comprises the condensed consolidated statement of profit or loss,the condensed consolidated statement of comprehensive income,the condensed consolidated statement of financial position,the
200、condensed consolidated statement of changes in equity,the condensed consolidated statement of cash flows and related notes 1 to 14.We have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the fin
201、ancial information.Based on our review,nothing has come to our attention that causes us to believe that the condensed set of consolidated financial statements in the half-yearly financial report for the six months ended 30 June 2023 is not prepared,in all material respects,in accordance with UK adop
202、ted International Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of the United Kingdoms Financial Conduct Authority.Basis for conclusionWe conducted our review in accordance with International Standard on Review Engagements(UK)2410(Revised),“Review of Interim Financial Inf
203、ormation Performed by the Independent Auditor of the Entity”issued for use in the United Kingdom.A review of interim financial information consists of making enquiries,primarily of persons responsible for financial and accounting matters,and applying analytical and other review procedures.A review i
204、s substantially less in scope than an audit conducted in accordance with International Standards on Auditing(UK)and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit.Accordingly,we do not express an audit op
205、inion.As disclosed in note 1,the annual financial statements are prepared in accordance with UK-adopted international accounting standards.The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with UK adopted International Accounting
206、Standard 34,“Interim Financial Reporting”.Conclusions relating to Going ConcernBased on our review procedures,which are less extensive than those performed in an audit as described in the Basis of Conclusion section of this report,nothing has come to our attention to suggest that management have ina
207、ppropriately adopted the going concern basis of accounting or that management have identified material uncertainties relating to going concern that are not appropriately disclosed.This conclusion is based on the review procedures performed in accordance with ISRE(UK)2410(Revised),however future even
208、ts or conditions may cause the entity to cease to continue as a going concern.Responsibilities of directorsThe interim report,including the financial information contained therein,is the responsibility of,and has been approved by,the directors.The directors are responsible for preparing the interim
209、report in accordance with UK adopted International Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of the United Kingdoms Financial Conduct Authority,which requires that the interim report must be prepared and presented in a form consistent with that which will be adopted i
210、n the Companys annual accounts having regard to the accounting standards applicable to such annual accounts.In preparing the interim financial report,the directors are responsible for assessing the Companys ability to continue as a going concern,disclosing,as applicable,matters related to going conc
211、ern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations,or have no realistic alternative but to do so.Our responsibilities for the review of the financial informationIn reviewing the interim report,we are responsible for
212、expressing to the company a conclusion on the condensed set of financial statement in the half-yearly financial report.Our conclusion,including our Conclusions Relating to Going Concern,are based on procedures that are less extensive than audit procedures,as described in the Basis for Conclusion par
213、agraph of this report.Use of the review reportThis report is made solely to the Company in accordance with International Standard on Review Engagements(UK)2410 issued by the Financial Reporting Council and our Engagement Letter dated 13 July 2023.Our work has been undertaken so that we might state t
214、o the Company those matters we are required to state to it in an independent review report and for no other purpose.To the fullest extent permitted by law,we do not accept or assume responsibility to anyone other than the Company,for our review work,for this report,or for the conclusions we have for
215、med.Mazars LLPChartered Accountants30 Old Bailey London EC4M 7AU25 July 2023 Notes:1.The maintenance and integrity of the Bridgepoint Group plc web site is the responsibility of the directors;the work carried out by us does not involve consideration of these matters and,accordingly,we accept no resp
216、onsibility for any changes that may have occurred to the interim report since it was initially presented on the web site.2.Legislation in the United Kingdom governing the preparation and dissemination of financial information may differ from legislation in other jurisdictions.Independent Review Repo
217、rt to Bridgepoint Group plc Bridgepoint 2023 Interim Report22Condensed Consolidated Statement of Profit or Lossfor the six months ended 30 JuneNote 2023 m(Restated)2022 mManagement and other fees124.6100.9Carried interest6.414.0Fair value remeasurement of investments6.324.7Other operating income0.50
218、.5Total operating income137.8140.1Personnel expenses3(61.3)(61.5)Other operating expenses(22.2)(18.1)EBITDA*54.360.5Depreciation and amortisation5(8.6)(9.1)Other income610.91.1Other expenses6(3.5)(4.2)Profit before tax*53.148.3Tax7(4.9)(3.4)Profit after tax48.244.9Attributable to:Equity holders of t
219、he parent48.244.9Basic and diluted earnings per share80.060.05*Exceptional expenses of 1.3m(2022:0.7m)are included in EBITDA.Profit before tax includes exceptional expenses of 1.3m(2022:2.1m)and exceptional income of 5.9m(2022:nil).Details of exceptional items are included in note 4 on page 31.*The
220、Group has changed the presentation of the Condensed Consolidated Statement of Profit or Loss for the six months ended 30 June 2022 to reclassify foreign exchange gains/losses from EBITDA to other income/expenses with nil impact in profit before tax or profit after tax.Further details are provided in
221、 note 1 on page 28.The notes to the accounts form an integral part of these interim financial statements.Bridgepoint 2023 Interim Report23Condensed Consolidated Statement of Comprehensive Income for the six months ended 30 JuneNote2023 m2022 mProfit after tax48.244.9Items that may be reclassified to
222、 the statement of profit or loss in subsequent periods:Exchange differences on translation of foreign operations(8.7)6.2Change in the fair value of hedging instruments8.8(11.3)Reclassifications to the Condensed Consolidated Statement of Profit or Loss2.22.2Total tax on components of other comprehens
223、ive income(2.5)2.1Other comprehensive expense net of tax(0.2)(0.8)Total comprehensive income net of tax48.044.1Total comprehensive income attributable to:Equity holders of the parent48.044.1The notes to the accounts form an integral part of these interim financial statements.Bridgepoint 2023 Interim
224、 Report24Condensed Consolidated Statement of Financial PositionNote30 June 2023 m 31 December 2022 mAssetsNon-current assetsProperty,plant and equipment84.585.5Goodwill and intangible assets118.1119.6Carried interest receivable947.142.0Fair value of fund investments10(a)296.8273.0Trade and other rec
225、eivables10(a)18.719.9Total non-current assets565.2540.0Current assetsConsolidated CLO assets*10(a)948.0741.3Trade and other receivables10(a)120.0184.9Derivative financial assets10(a)3.71.0Other investments,at fair value10(a)16.0Cash and cash equivalents10(a)258.4196.0Term deposits with original matu
226、rities of more than three months10(a)100.0Consolidated CLO cash*10(a)30.724.6Total current assets1,376.81,247.8Total assets1,942.01,787.8LiabilitiesNon-current liabilitiesTrade and other payables10(b)13.713.6Other financial liabilities10(b)50.349.5Fair value of consolidated CLO liabilities*10(b)797.
227、4597.5Lease liabilities10(b)75.377.1Deferred tax liabilities25.819.4Total non-current liabilities962.5757.1Current liabilitiesTrade and other payables10(b)83.0115.5Lease liabilities10(b)11.36.1Derivative financial liabilities 10(b)4.413.2Consolidated CLO liabilities*10(b)5.92.6Consolidated CLO purch
228、ases awaiting settlement*10(b)115.4120.6Total current liabilities220.0258.0Total liabilities1,182.51,015.1Net assets759.5772.7EquityShare capital 13(a)0.10.1Share premium13(a)289.8289.8Capital redemption reserve13(f)Share-based payment reserve13(e)3.03.6Cash flow hedge reserve13(c)2.1(8.9)Net exchan
229、ge differences reserve13(d)5.714.4Retained earnings458.8473.7Total equity759.5772.7*Detail of the Groups interest in consolidated CLOs are included in note 10.The equity holders exposure in the consolidated CLOs is 60.0m at 30 June 2023(31 December 2022:45.2m).The Groups investment in CLOs which are
230、 not consolidated is 15.0m(31 December 2022:15.1m)and are included within fair value of fund investments.ACondensed Consolidated Statement of Financial Position,excluding consolidated CLOs is presented on page 45.The notes to the accounts form an integral part of these interim financial statements.B
231、ridgepoint 2023 Interim Report25Condensed Consolidated Statement of Changes in Equityfor the six months ended 30 JuneNoteShare capital mShare premium mCapital redemption reserve mShare-based payment reserve m Cash flow hedge reserve mNet exchange differences reserve mRetained earnings mTotal equity
232、mAt 1 January 20230.1289.83.6(8.9)14.4473.7 772.7Profit for the period48.248.2Other comprehensive income11.0(8.7)(2.5)(0.2)Total comprehensive income11.0(8.7)45.748.0Share-based payments3 2.22.2Transfer of share-based payment reserve into retained earnings13(e)(2.8)2.8Share buyback programme13(f)(30
233、.7)(30.7)Dividends11(32.7)(32.7)At 30 June 20230.1289.80.03.02.15.7458.8 759.5NoteShare capital mShare premium mCapital redemption reserve mShare-based payment reserve m Cash flow hedge reserve mNet exchange differences reserve mRetained earnings mTotal equity mAt 1 January 20220.1289.83.27.53.1412.
234、6716.3Profit for the period44.944.9Other comprehensive income(9.1)6.22.1(0.8)Total comprehensive income(9.1)6.247.044.1Share-based payments30.40.4Dividends11(30.0)(30.0)At 30 June 20220.1289.83.6(1.6)9.3429.6730.8The notes to the accounts form an integral part of these interim financial statements.B
235、ridgepoint 2023 Interim Report26Condensed Consolidated Statement of Cash Flows for the six months ended 30 JuneNote2023 m2022 mCash flows from operating activitiesCash generated from operations1277.4(32.6)Tax paid(2.5)(1.1)Net cash(outflow)/inflow from operating activities74.9(33.7)Cash flows from i
236、nvesting activitiesInvestment in term deposits with original maturities of more than three months10(a)100.0(100.0)Receipts from investments(non-CLO)6.428.3Purchase of investments(non-CLO)(21.3)(22.7)Purchase of other investments(non-CLO)(14.3)Interest received(non-CLO)1.60.5Payments for property,pla
237、nt and equipment(2.0)(12.0)Acquisition of CLOs(15.5)(11.4)Receipts from investments(consolidated CLOs)117.576.0Purchase of investments(consolidated CLOs)(306.2)(81.0)Cash movements from the consolidation of CLOs56.8Net cash(outflow)/inflow from investing activities(133.8)(65.5)Cash flows from financ
238、ing activitiesExceptional transaction costs(2.2)Dividends paid to shareholders of the Company11(32.7)(30.0)Share buyback(30.7)Drawings from related party investors in intermediate fund holding entities3.5Principal elements of lease payments(1.0)(2.8)Drawn funding(consolidated CLOs)26.1Repayment of C
239、LO borrowings(consolidated CLOs)(101.7)(4.4)Cash from CLO investors(consolidated CLOs)271.4Interest paid(non-CLO)(2.4)(2.3)Net cash(outflow)/inflow from financing activities129.0(38.2)Net increase/(decrease)in cash and cash equivalents70.1(137.4)Total cash and cash equivalents at the beginning of th
240、e period220.6327.3Effect of exchange rate changes on cash and cash equivalents(1.6)1.0Total cash and cash equivalents at the end of period289.1190.9Cash and cash equivalents(for use within the Group)10(a)258.4139.3Consolidated CLO cash(restricted for use within relevant CLO)10(a)30.751.6Total cash a
241、nd cash equivalents at the end of period289.1190.91.The Condensed Consolidated Statement of Cash Flows includes the cash flows of consolidated CLOs.A Condensed Consolidated Statement of Cash Flows excluding the impact of consolidating CLOs is included on page 46.The notes to the accounts form an int
242、egral part of these interim financial statements.Bridgepoint 2023 Interim Report27Notes to the condensed consolidated interim financial statements 1 General information and basis of preparationGeneral informationBridgepoint Group plc(the“Company”)is a public company limited by shares,incorporated,do
243、miciled and registered in England and Wales.The Companys registration number is 11443992 and the address of its registered office is 5 Marble Arch,London,W1H 7EJ.The principal activity of the Company and entities controlled by the Company(collectively,the“Group”)is to act as a private equity and cre
244、dit fund manager.Basis of preparationThe condensed consolidated interim financial statements(“interim financial statements”)for the six months ended 30 June 2023 have been prepared in accordance with UK-adopted IAS 34“Interim Financial Reporting”and the Disclosure Guidance and Transparency Rules of
245、the United Kingdoms Financial Conduct Authority.The interim financial statements should be read in conjunction with the Annual Report and Accounts for the year ended 31 December 2022 including the statutory accounts for the year to 31 December 2022(the“2022 financial statements”).TheGroups accountin
246、g policies,areas of significant judgement and the key sources of estimation uncertainty are consistent with those applied to the 2022 financial statements.The financial information contained within this half year financial report does not constitute statutory accounts as defined in Section 434 of th
247、e Companies Act 2006.The 2022 financial statements have been reported on by Mazars LLP and delivered to the Registrar of Companies.The report of the auditors was(i)unqualified,(ii)did not include a reference to any matters which the auditors drew attention by way of emphasis without qualifying their
248、 report,and(iii)did not contain a statement under section 498(2)or(3)of the Companies Act 2006.Financial information dated 30 June 2023 and comparative financial information dated 30 June 2022 has not been audited,while comparative financial information dated 31 December 2022 has been audited as par
249、t of the 2022 financial statements unless noted.The consolidated financial statements of Bridgepoint Group plc and entities controlled by the Company forthe year ended 31 December 2022 were prepared in accordance with UK-adopted International Accounting Standards(“IAS”)and the legal requirements of
250、the Companies Act 2006 and have been prepared under the historical cost convention,except for financial instruments measured at fair value and are available on the Groups website:www.bridgepoint.eu.The 2023 financial statements will be prepared in a consistent manner.Future accounting developmentsTh
251、e Group has not early adopted any standard,interpretation or amendment that has been issued but is not yet effective.No other standards or interpretations have been issued that are expected to have a material impact on the Groups interim financial statements.Change to comparative period financial in
252、formation The following change has been made to the comparative period presented within these financial statements:The presentation of foreign exchange gains has been changed in the Condensed Consolidated Statement of Profit or Loss as it primarily relates to non-operating activities.As a result the
253、 comparative information for the affected line items for the six months ended 30 June 2022 has been restated to reclassify foreign exchange gains of 0.6m into other income.The restatement will also impact the prior period EBITDA and FRE subtotals throughout the report but there is no impact on net p
254、rofit in either period.Related party transactionsAll related party transactions that took place in the six months ended 30 June 2023 are consistent in nature with the disclosures in note 25 to the 2022 financial statements.There have been no material changes to the nature or size of related party tr
255、ansactions since 31 December 2022.2 Operating segmentsOperating segments are the components of the Group whose results are regularly reviewed by the Groups chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance.The Executive Directo
256、rs are considered to be the chief operating decision maker of the Group,which is divided into operating segments based on how key management reviews and evaluates the operation and performance of the business.Bridgepoint 2023 Interim Report28The Groups operations are divided into two groups,the core
257、 business,consisting of the Private Equity and Private Credit fund management and associated Central support,and Other.Other includes the Groups procurement consulting business,PEPCO Services LLP,and costs relating tostrategic projects.The Groups core operations are divided into two business segment
258、s:Private Equity and Private Credit.The operations of both business segments consist of providing investment management services to the underlying funds and their investors.The investment management services comprise of identification and structuring of new investments,the monitoring of investments
259、and the sale and exit from investments.The two business segments are supported by the Central support functions which include investor relations,head office,finance,human resources,ITand marketing.In 2022 certain investor relations and legal related costs were reclassified to Central from Credit ref
260、lecting team restructuring.Segmental income and profit before tax analysisThe Executive Directors assess the operating segments based on the line items below,primarily on operating income and underlying EBITDA.The EBITDA for each segment,together with depreciation and amortisation and net other inco
261、me or expenses forms profit before tax.Depreciation and amortisation,net other income or expense and exceptional expenses are not allocated to operating segments and are included in the Group total.Six months ended 30 June 2023Private Equity mPrivate Credit mCentral mTotal Core mTotal Other mTotal G
262、roup mManagement and other fees95.827.01.8124.6124.6Carried interest6.46.46.4Fair value remeasurement of investments4.91.46.36.3Other operating income0.50.5Total operating income107.128.41.8137.30.5137.8Personnel expenses(34.1)(10.7)(15.7)(60.5)(0.5)(61.0)Other operating expenses(8.1)(4.1)(8.9)(21.1
263、)(0.1)(21.2)Underlying EBITDA(excluding exceptional expenses)64.913.6(22.8)55.7(0.1)55.6Exceptional expenses(1.3)EBITDA(including exceptional expenses)54.3Depreciation and amortisation(8.6)Other income and expenses7.4Profit before tax53.1Six months ended 30 June 2022(Restated)Private Equity mPrivate
264、 Credit mCentral mTotal Core mTotal Other mTotal Group mManagement and other fees76.622.81.5100.9100.9Carried interest14.014.014.0Fair value remeasurement of investments22.81.924.724.7Other operating income0.50.5Total operating income113.424.71.5139.60.5140.1Personnel expenses(30.6)(11.5)(18.3)(60.4
265、)(0.5)(60.9)Other operating expenses(5.5)(3.8)(8.6)(17.9)(0.1)(18.0)Underlying EBITDA(excluding exceptional expenses)77.39.4(25.4)61.3(0.1)61.2Exceptional expenses(0.7)EBITDA(including exceptional expenses)60.5Depreciation and amortisation(9.1)Other income and expenses(3.1)Profit before tax48.3Bridg
266、epoint 2023 Interim Report29Notes to the condensed consolidated interim financial statements continuedAssets and liabilities analysisThe Groups Condensed Consolidated Statement of Financial Position is managed as a single unit rather than by segment.The only distinction for the business segments rel
267、ates to the Groups investments in funds,carried interest receivable and other investments,which can be split between Private Equity and Private Credit(split between that attributable to the Group and to third party investors).30 June 2023 m31 December 2022 mInvestmentsPrivate equity256.6241.3Private
268、 equity-other investments 16.0Private credit(assets attributable to the Group)100.276.9Private credit(CLO assets attributable to third party investors)888.0696.1Total investments1,260.81,014.3Carried interest receivablePrivate equity44.539.4Private credit2.62.6Total carried interest receivable47.142
269、.03 Operating expensesOperating expenses include:Six months ended 30 June2023 m2022 mWages and bonuses(44.9)(47.7)Social security costs(8.9)(7.9)Pensions(1.0)(1.0)Share-based payments(2.2)(0.4)Other employee expenses(4.3)(4.5)Personnel expenses(61.3)(61.5)Total personnel expenses include 0.3m(2022:0
270、.6m)of exceptional expenses,and accordingly are excluded from the calculation of underlying profitability measures(see note 4 for further details).a)Long-term incentive plansA new long-term incentive plan(“LTIP”)was granted to qualifying employees on 31 March 2023,of total value of the awards of 5.6
271、m on grant date.The Group will settle the awards,vesting over the period 30 June 2023 to 31 March 2025 either in Bridgepoint Group plc shares or an equivalent cash payment,with no consideration paid by the participants.As the LTIP awards vest subject to the achievement of certain service conditions,
272、namely the continued employment in the Group,they are accounted for as either equity-settled or cash-settled share-based payment transactions under the Groups accounting policy in line with IFRS 2“Share-based Payment”.This requires each award to be measured at fair value on its grant date,and in the
273、 case of the cash-settled share-based payments revalued at each reporting date.The fair value is calculated based on the market value of the shares at the grant date,adjusted for any market or non-vesting conditions of the shares.A share-based payment is recognised over the applicable vesting period
274、 as a personnel expense,with a corresponding entry in the share-based payment reserve within equity for equity-settled awards or as a liability for cash-settled awards,along with any employment taxes to be incurred by the Group.Bridgepoint 2023 Interim Report30Number of sharesWeighted average fair v
275、alue per share granted()30 June 202330 June 202230 June 202330 June 2022Rights outstanding at beginning of the periodGranted2,777,4532.15Forfeited(28,506)2.17Vested(743,473)2.17Rights outstanding(unvested)at end of the period2,005,4742.14b)Restricted share planOn 31 March 2023,a director of the Comp
276、any was granted a conditional share award of 114,953 shares at a value of 2.17 per share,with total value 250,000,vesting on 31 March 2026.As of 30 June 2023,the Group recognised 2.1m in personnel expenses related to these new awards and a further 0.1m relating to previous awards for which there hav
277、e been no changes in the period.4 Exceptional itemsExceptional items are material items of income or expenditure that are not considered to be incurred in the normal course of business and without separate disclosure could distort an understanding of the financial statements.Accordingly,exceptional
278、items are excluded from the calculation of underlying profitability measures.Six months ended 30 June2023 m2022 mPersonnel expenses(0.3)(0.6)Other operating expenses(1.0)(0.1)Total exceptional expenses within EBITDA(1.3)(0.7)Other expenses-(1.4)Total exceptional expenses(1.3)(2.1)Six months ended 30
279、 June2023 m2022 mOther income5.9Total exceptional income5.9a)Exceptional personnel expensesIn 2023 and 2022,exceptional personnel expenses include deferred transaction related bonuses and associated social security costs from the acquisition of EQT Credit in 2020.Specific bonus payments payable to e
280、mployees in relation to the EQT acquisition are exceptional as similar awards were only granted once.The awards incentivise employees to align their goals with those of the business through being awarded over multiple periods,hence such expenses will continue to be recognised until 2025.b)Exceptiona
281、l other operating expensesIn 2022 and 2023,exceptional other operating expenses include costs incurred in relation to strategic projects,including potential acquisitions.c)Exceptional other incomeExceptional other income of 5.9m(2022:nil)relates to remeasurement and revaluation of the deferred conti
282、ngent consideration payable and associated unwind of discount to EQT AB in relation to the acquisition of EQT Credit in 2020.The deferred consideration payable to EQT AB was recognised upon acquisition and is considered exceptional as there are no similar contractual liabilities with EQT AB.Due to t
283、he contractual arrangement underlying the deferred consideration,which is a payable in a future accounting period,there have been exceptional items related to the valuation in multiple periods.Bridgepoint 2023 Interim Report315 Depreciation and amortisationThe following table summarises the deprecia
284、tion and amortisation charge during the period.Six months ended 30 June 2023 m 2022 mDepreciation on property,plant and equipment(7.1)(7.6)Amortisation of intangible assets(1.5)(1.5)Total depreciation and amortisation(8.6)(9.1)The amortisation of intangible assets is excluded from the calculation of
285、 underlying profitability measures in order to enhance the understanding of the underlying performance.6 Other income and expensesSix months ended 30 June2023 m(Restated)2022 mInterest income on term deposits4.4Finance income on subleases0.30.5Foreign exchange gainsFinance income on amounts receivab
286、le from related party investors0.30.6Other income5.9Total other income10.91.1Interest expense on bank overdrafts and borrowings(0.7)(0.7)Interest expense on lease liabilities(2.0)(1.7)Other expenses(0.4)(1.7)Finance expense on amounts payable to related party investors(0.1)(0.1)Foreign exchange loss
287、es(0.3)Total other expenses(3.5)(4.2)Net other income/(expense),including exceptional items7.4(3.1)a)Other incomeOther income in 2023 primarily relates to the remeasurement and revaluation of the deferred contingent consideration payable and associated unwind of discount to EQT AB of 5.9m(2022:nil).
288、The deferred contingent consideration is payable to EQT AB and relates to the outcome of certain fundraising for the Bridgepoint Direct Lending III and Bridgepoint Credit Opportunities IV funds that falls within the definitions applying to deferred consideration in the transaction documents.These fu
289、ndraises have either completed or are expected to complete during 2023.At 30 June 2023,the Group remeasured the expected liability at that point,which equated to 10.4m(2022:16.7m),through the profit and loss.This income is considered exceptional income,and accordingly is excluded from the calculatio
290、n of underlying profitability measures.b)Other expensesOther expenses of 0.4m(2022:0.2m)include borrowing facility fees which are being amortised over the term of a new 200m facility with a duration of three years and the accelerated amortisation of a previous capitalised borrowing facility fee,whic
291、h related to the pre-existing facility,which was terminated on the commencement of the new facility.Further detail is included in note 10(b).In the six months ended 30 June 2022,other expenses of 1.5m related to the unwind of discounting of the deferred contingent payable to EQT AB and is considered
292、 an exceptional expense,and accordingly excluded from the calculation of underlying profitability measures.c)Finance income and expense on amounts with related party investorsFinance income and expense represent amounts due to or from related party investors in Opal Investments LP,BE VI(French)Co-In
293、vest LP,BDC IV(French)Co-Investment LP and Maple Tree VII LP under the limited partnership agreements.Notes to the condensed consolidated interim financial statements continuedBridgepoint 2023 Interim Report327 Tax expenseAnalysis of tax expense reported in the income statement:Six months ended 30 J
294、une2023 m2022 mCurrent tax(1.1)(1.0)Deferred tax(3.8)(2.4)Total tax expense(4.9)(3.4)The tax expense for the half year to 30 June 2023 is calculated based on a forecast full year effective tax rate for the Group which is then applied to the actual profit before tax for the half year.8 Earnings per s
295、hareSix months ended 30 June20232022Profit attributable to equity holders of the Company(m)48.244.9Weighted average number of ordinary shares for purposes of basic and diluted EPS(m)816.8823.3Basic and diluted earnings per share()0.060.05The adjusted earnings per share on underlying profit after tax
296、 of 45.3m(2022:48.5m)based on the number of shares in issue at 30 June 2023 is 0.06(2022:0.06 on underlying profit after tax of 48.5m based on the number of shares in issue at 30 June 2022).The underlying profit after tax is calculated by excluding exceptional items and the amortisation of intangibl
297、e assets from within profit after tax.The number of ordinary shares used in the calculation of earnings per share excludes shares held by the Group itself and those subject to the Share Buyback Programme.Further detail is included in note 13(f).9 Carried interest receivableThe carried interest recei
298、vable relates to revenue which has been recognised by the Group relating to its share of fund profits through its holdings in Carried Interest Partnerships(“CIPs”).Revenue is only recognised to the extent it is highly probable that the revenue recognised would not result in significant revenue rever
299、sal of any accumulated revenue recognised on the completion of a fund.The reversal risk is mitigated through the application of discounts.If adjustments to the carried interest receivable recognised in previous periods are required,they are adjusted through revenue.As at 30 June 2023,the undiscounte
300、d carried interest asset is 113.8m(2022:103.5m).30 June 2023 m31 December 2022 mOpening balance42.038.9Income recognised in the period/year5.723.1Foreign exchange movements recognised as profit or loss(0.5)1.1Foreign exchange movements recognised as other comprehensive income(0.1)0.1Receipts of carr
301、ied interest(21.2)Closing balance47.142.0Bridgepoint 2023 Interim Report3310 Financial assets and liabilities(a)Classification of financial assetsThe following tables analyse the Groups assets in accordance with the categories of financial instruments in IFRS 9“Financial Instruments”(“IFRS 9”).Asset
302、s which are not considered as financial assets,for example prepayments and lease receivables,under IFRS 9 are also shown in the table in a separate column in order to reconcile to the face of the Condensed Consolidated Statement of Financial Position.As at 30 June 2023Fair value through profit or lo
303、ss mHedging derivatives mFinancial assets at amortised cost mAssets which are not financial assets mTotal mFair value of fund investments296.8296.8Consolidated CLO assets925.122.9948.0Trade and other receivables107.930.8138.7Derivative financial instruments3.73.7Other investments,at fair value*16.01
304、6.0Cash and cash equivalents258.4258.4Term deposits with original maturities of more than three monthsConsolidated CLO cash30.730.7Total 1,237.93.7419.930.81,692.3As at 31 December 2022Fair value through profit or loss mHedging derivatives mFinancial assets at amortised cost mAssets which are not fi
305、nancial assets mTotal mFair value of fund investments273.0273.0Consolidated CLO assets726.315.0741.3Trade and other receivables181.623.2204.8Derivative financial instruments1.01.0Cash and cash equivalents196.0196.0Term deposits with original maturities of more than three months100.0100.0Consolidated
306、 CLO cash24.624.6Total 999.31.0517.223.21,540.7*Other investments have been designated as financial assets at fair value through profit or loss upon initial recognition.There are no material differences between the above amounts for trade and other receivables and their fair value.i)Fair value of fu
307、nd investmentsInvestments representing the Groups interests in private equity and credit funds are initially recognised at fair value and subsequently remeasured at fair value through profit or loss within operating income.The investments primarily consist of loans or commitments made in relation to
308、 the Bridgepoint Europe VI,V and III,Bridgepoint Development Capital IV and III private equity funds,the Bridgepoint Credit I,Direct Lending II and I,and Credit Opportunities IV and III credit funds.The fund investments are measured at fair value through profit or loss as the business model of each
309、vehicle is to manage the assets and to evaluate their performance on a fair value basis.Notes to the condensed consolidated interim financial statements continuedBridgepoint 2023 Interim Report34ii)Other investments,at fair valueOther investments include,but is not limited to,loans made to a Group p
310、ortfolio company.The Group elected the fair value option on these loans.Interest income is accrued on the principal amount of the loans based on its contractual interest rate.Other income is reported in other operating income within the Condensed Consolidated Statements of Profit or Loss.Changes in
311、the value of other investments are measured at fair value through profit and loss.iii)CLO assetsThe balance shown includes the gross value of the assets held by CLO 1,CLO 3,CLO 4 and CLO 5(2022:CLO 1,CLO3 and CLO 4),which are consolidated by the Group,but of which the Group only holds the rights and
312、 liabilities in relation to a small portion.The CLO assets are measured at fair value through profit or loss as the business model of each vehicle is to manage the assets and to evaluate their performance on a fair value basis.30 June 2023 m31 December 2022 mConsolidated CLO assets consolidated by t
313、he Group948.0741.3Consolidated CLO assets attributable to third party investors(888.0)(696.1)Groups exposure to consolidated CLO assets60.045.2iv)Cash and term deposits30 June 2023 m31 December 2022 mCash at bank and in hand41.878.3Money market funds116.617.7Term deposits with original maturities of
314、 less than three months100.0100.0Total cash and cash equivalents258.4196.0Term deposits with original maturities of more than three months100.0Consolidated CLO cash30.724.6Total cash and term deposits289.1320.6Cash and cash equivalents comprise cash in hand and call deposits,and other short-term hig
315、hly liquid investments including term deposits with original maturities of three months or less and money market funds,which are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.Term deposits represent fixed term deposits placed with banks an
316、d financial institutions.Consolidated CLO cash is cash held by CLO vehicles consolidated by the Group and is not available for the Groups operating activities.There are no material differences between the carrying amounts and fair values of cash and cash equivalents,term deposits with original matur
317、ities of more than three months and consolidated CLO cash.Credit risk exposure on cash and term deposits is managed in accordance with the Groups Treasury&Risk Management Policy which provides limits on exposures with any single financial institution.The Groups surplus cash is held with financial in
318、stitutions or money market funds which are rated as investment grade by third party rating agencies.As at 30 June 2023,100%of cash and term deposits were held with institutions or funds that are rated investment grade or above and all money market funds are AAA rated.Bridgepoint 2023 Interim Report3
319、5(b)Classification of financial liabilitiesThe following tables analyse the Group and Companys financial liabilities in accordance with the categories of financial instruments defined in IFRS 9.Liabilities such as deferred income,long-term employee benefits,social security and other taxes are exclud
320、ed as they do not constitute a financial liability and are shown in the table in a separate column in order to reconcile to the face of the Condensed Consolidated Statement of Financial Position.As at 30 June 2023Fair value through profit or loss mHedging derivatives mFinancial liabilities at amorti
321、sed cost mLiabilities which are not financial liabilities mTotal mTrade and other payables10.425.460.996.7Other financial liabilities50.350.3Lease liabilities86.686.6Derivative financial instruments4.44.4Consolidated CLO liabilities797.45.9803.3Consolidated CLO purchases awaiting settlement115.4115.
322、4Total 858.14.4233.360.91,156.7As at 31 December 2022Fair value through profit or loss mHedging derivatives mFinancial liabilities at amortised cost mLiabilities which are not financial liabilities mTotal mTrade and other payables16.751.860.6129.1Other financial liabilities49.549.5Lease liabilities8
323、3.283.2Derivative financial instruments13.213.2Consolidated CLO liabilities597.52.6600.1Consolidated CLO purchases awaiting settlement120.6120.6Total 663.713.2258.260.6995.7The carrying amount of financial liabilities carried at amortised cost approximates their fair value,and therefore have not bee
324、n included in the disclosure within this section.i)Borrowing On 1 June 2023,the Company entered into a new Revolving Facility Agreement for 200m for a period of three years.At 30 June 2023,there were no drawn amounts on the facility.This new borrowing arrangement replaced a 125m facility held by ano
325、ther Group entity,which was terminated on the same date.(c)Fair value measurementFair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal,or in its absence,the most a
326、dvantageous market to which the Group has access to at that date.The fair value of a liability reflects its non-performance risk.The Group discloses fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements:Quoted prices(unadjus
327、ted)in active markets(level 1);Inputs other than quoted prices included within level 1 that are observable for assets or liabilities,either directly(as prices)or indirectly(derived from prices)(level 2);Inputs for assets or liabilities that are not based on observable market data(level 3).Notes to t
328、he condensed consolidated interim financial statements continuedBridgepoint 2023 Interim Report36Investments in funds,which hold portfolios of private equity and credit assets are valued in line with the International Private Equity and Venture Capital Valuation(“IPEV”)Guidelines using a variety of
329、methodologies.These investments are classified as level 3 financial assets due to the level of unobservable inputs within the determination of the valuation of individual assets within each fund and the lack of an observable price for each investment in a fund.The assets of the CLO vehicles,which ar
330、e fully consolidated by the Group,are classified as level 2 fair values as they are priced using independent loan pricing sources.These sources consolidate broker quotes where depth represents the number of quotes supporting the price provided.Further details of the valuation methodologies,process a
331、nd governance for investments in funds and investments held by consolidated CLOs is set out within the notes to the 2022 financial statements.Derivatives used for hedging,which are fair valued,are classified as level 2 fair values as the inputs are observable.Financial AssetsFinancial Liabilities30
332、June 2023 m31 December 2022 m30 June 2023 m31 December 2022 mFinancial assets and liabilities at fair value through profit or lossLevel 1Level 2953.6727.34.413.2Level 3288.0273.0858.1663.7Total1,241.61,000.3862.5676.9i)Reconciliation of level 3 fair value measurements of financial assets A reconcili
333、ation of level 3 fair values for financial assets which represent the Groups interest in private equity and credit funds,including the Groups investment in CLOs which are not consolidated,is set out in the table below:30 June 2023 m31 December 2022 mLevel 3 financial assets at fair value through profit or lossOpening balance273.0313.7Additions21.338.5Change in fair value5.132.9Foreign exchange mov