Bridgepoint backs Sweden-based PSP

The firm’s small-cap arm has acquired a stake in online payments services provider Trustly

Bridgepoint Development Capital, the small-cap arm of UK-based mid-market investor Bridgepoint, has acquired a minority stake in Stockholm-based online payments services provider Trustly Group for around €23 million, according to a statement from Trustly.

The investment will support the continued growth of the business, which currently processes payments of €1.1 billion per annum. This implies a year-on-year growth in excess of 100 percent, according to Trustly.

Trustly, which has 65 employees, was ranked in 2014 as one of Sweden’s fastest-growing technology companies on the Deloitte Sweden Technology Fast 50 list. Its technology platform can integrate any payment method and offers instant pay-ins and pay-outs, based on online banking e-payments. The company’s payment methods were created for mobile devices and offer cross-border payment options.

The company is currently expanding into new European markets, aiming to make cross-border European payments as safe and convenient as domestic payments, Trustly said.

“The European online payments market is expected to grow from €37 billion to [around] €65 billion by 2020 and benefits from underlying structural growth, as e-commerce and purchases of digital goods take an increasing share of total trade,” BDC partner Johan Dahlfors said in a statement. “[Trustly has] shown strong growth on the back of an attractive technology platform and a scalable business model. The business is therefore well positioned in a growing market for online payment solutions.”

BDC focuses on buyouts and growth capital investments in business with an enterprise value of between €20 million and €150 million, typically investing between €10 million and €75 million of equity per transaction. It is understood that the investment in Trustly is the eighth investment from the firm’s latest fund, Bridgepoint Development Capital II, a 2013-vintage €353 million vehicle.

In June BDC sold IT infrastructure provider Pulsant to Oak Hill Capital Partners, generating a return of 3.1x. In March the firm acquired Thinking Group, a marketing services and technology company, for £28 million, and in July acquired pharma technology business Phlexglobal from UK-based Inflexion Private Equity for £42 million.

Bridgepoint is also raising a larger flagship fund. In October PEI reported that the firm had amassed €2.8 billion for Bridgepoint Europe V, which came to market in May targeting €3.5 billion. Bridgepoint is expecting to close the fund, which has a four-year investment period, on its €4 billion hard-cap by the end of the year.