BDC seals final deal from Fund II

The small-cap arm of pan-European firm Bridgepoint has acquired residential activity centres Inspiring Learning.

Bridgepoint Development Capital (BDC), the small-cap arm of pan-European private equity house Bridgepoint, has completed the final deal of its second fund, acquiring Inspiring Learning from aPriori Capital and Ares Management.

Financial details of the transaction were not disclosed, but it is understood that the enterprise value is under £100 million ($122 million; €111 million).

Inspiring Learning, based in the UK, provides children’s educational trips and adventure breaks.

The market for private providers of residential activity centres in the UK is currently worth £130 million annually and is forecast to continue to grow at between 8 and 10 percent over the next five years, the firm said.

Kingswood, the company’s main division, operates 10 residential activity centres with more than 4,000 beds, mainly in the North, East and South East of the UK. Under the current management team it has grown by opening new sites and expanding existing ones.

In the year ending 31 October 2015 Inspiring Learning had revenues of £69.7 million, BDC said.

Debt for the Inspiring Learning transaction was provided by Barings and Crescent Capital, with RBS providing ancillary working capital facilities.

This is the 14th and final transaction for BDC II, a 2012-vintage fund which closed on €353 million. Investors in Fund II include the European Investment Fund, The Royal Bank of Scotland Group Pension Fund and the School Employees’ Retirement System of Ohio, according to PEI data.

In June BDC closed its third fund above its initial £500 million target on its £600 million hard-cap. The fund was heavily oversubscribed with a high degree of scale-backs, as reported by PEI.

Bridgepoint Development Capital III will continue with the same investment strategy, focusing on business in the UK, France and the Nordics with an enterprise value of between £30 million and £125 million.

BDC’s team of 26 investment professionals operate from its offices in London, Paris and Stockholm.