Bridgepoint Group, the London-listed alternative asset manager, has upgraded its full-year earnings guidance and overhauled its dividend policy.
It comes after exceptional performance within its flagship private equity fund drove a material beat against expectations, sending its shares up 7% to 371.46p.
Cavendish, which rates the stock a 'buy' with a 575p target price, said the update reflects "continuous positive momentum" from Bridgepoint over the past 12 months and reiterated its recommendation while flagging it will review forecasts.
The upgrade is driven by ECP V, Bridgepoint's flagship buyout fund, where the money multiple is expected to exceed 4x at September 2026.
As a result, the group now expects performance-related earnings (PRE) to represent 37-39% of total income for FY26, well above the 20-25% range it had previously guided for, with an EBITDA margin of around 60% targeted for FY27.
Medium-term PRE guidance has also been lifted to 25-30% of total income from 20-25% previously.
On capital returns, Bridgepoint is rebasing its FY26 dividend by 50% to 15p per share and introducing a new framework targeting distribution of 40-60% of cash from profits from FY27, paid quarterly, supplemented by special dividends and buybacks as required.
The group has also exceeded its €28 billion fundraising target a quarter ahead of schedule, while the integration of its Kayne Anderson Real Estate acquisition remains on track for completion in January 2027.
