Bridgepoint Group PLC (BPTB.L): KARE Acquisition Confirmed (>20% EPS Accretion) + Upgraded Guidance. Reiterate Buy

研报英文原文证据摘录

Bridgepoint Group PLC (BPTB.L): KARE Acquisition Confirmed (>20% EPS Accretion) + Upgraded Guidance. Reiterate Buy

Bridgepoint Group PLC (BPTB.L)

29 June 2026 Citi Research

Bridgepoint Group PLC

Valuation

We typically advocate for the use of an intrinsic valuation approach for private capital managers to reflect the long-term

contractual nature of the earnings streams, although also consider a relative valuation approach to value Bridgepoint shares.

For the intrinsic valuation framework, we believe it is best to consider a sum-of-the-parts approach, using a DCF valuation for

both the management fees (with WACC c11.8%) and performance fees (16-16.5%; slightly above larger peers). We then also add

the value of balance sheet investments and subtract net debt. Together this results in a fair value of 395p, which we set as our

target price

Risks

This stock screens as High Risk in our quantitative model, but we do not believe a High Risk rating is supported by the group’s

likely stable earnings profile and so a High Risk rating has not been applied. We see key risks, which may prevent shares from

reaching our target price or could cause shares to outperform our target price if we have overestimated their impact, as follows:

(1) Fundraising risk, i.e. lower than expected fundraises are the main risk to the growth story. (2) Competition and investment

performance have strong influence on future fundraises. (3) High concentration around flagship funds. (4) M&A risk. (5)

Complex financial reporting and carry volatility. (6) Changes in exit environment. (7) Key person risk.

If the impact on the company from any of these factors differs from our base case expectations, the stock could have difficulty

achieving our target price or could increase more than we expect.