Target Information

LDC, a prominent mid-market private equity investor in the UK, has successfully exited its investment in PEI Media Group Ltd ('PEI Media') following a sale to Bridgepoint Development Capital. The financial details of the transaction remain undisclosed. PEI Media stands as a leading provider of market intelligence and analytical insights tailored for senior professionals across various alternative asset classes including private equity, real estate, infrastructure, private debt, and emerging sectors such as agri-investing.

The company boasts a comprehensive product range that includes globally recognized print and digital publications, dedicated sector research databases, and a series of high-profile events. Since LDC facilitated a management buyout of PEI Media in 2015, the organization has made significant investments aimed at enhancing its digital platforms and content capabilities, effectively upgrading its subscription offerings while doubling its revenue from the events segment, which now features a range of prestigious international conferences.

Industry Overview

The alternative asset management sector in the UK is experiencing remarkable growth, driven by a shift towards diversified investment strategies and the increasing sophistication of investors. As institutional and retail investors alike seek higher returns, the demand for specialized knowledge and insights into private equity, real estate, and infrastructure has surged.

Moreover, the rise of digital platforms is transforming how industry data is disseminated, with professionals leaning towards online resources for real-time information. This transition presents an opportunity for companies like PEI Media to adapt and expand their service offerings, tapping into the growing market of data-driven decision-making.

In addition, the emergence of new asset classes and investment strategies has broadened the scope for alternative investments in the UK. As a result, there is an increasing need for targeted research and analytical support to navigate these complex markets effectively. Players in this space are positioned to benefit from this trend by offering tailored solutions that address the specific needs of investors.

With the UK maintaining its stature as a financial hub post-Brexit, the alternative investment industry continues to attract both domestic and international players. This environment encourages healthy competition, fostering innovation and opportunities for growth among leading firms.

Rationale Behind the Deal

The decision to sell PEI Media to Bridgepoint Development Capital aligns with LDC's strategy of realizing value from successful investments. Over the past years, PEI Media's robust expansion and focused enhancement of its digital and subscription services provided a significant uplift in revenue, culminating in a notable 78 percent growth to over £32 million for the financial year ending December 2017. LDC's exit marks a strategic move to capitalize on their substantial investment returns, evidenced by a money multiple of 3.5x and an impressive IRR of 70 percent.

The deal illustrates LDC's effective support of PEI Media's growth trajectory, equipping the company with the necessary resources and strategic direction to thrive within the competitive landscape of alternative asset management intelligence.

Information About the Investor

Bridgepoint Development Capital is recognized as a strong player within the private equity landscape, specializing in investments that drive growth in mid-market businesses. Their approach leverages extensive industry knowledge and a strong network to identify and capitalize on emerging trends, thus aligning perfectly with the evolving needs of firms in the alternative investment sector.

With a proven track record in advancing operational efficiencies and enhancing value propositions, Bridgepoint is well-equipped to support PEI Media's ongoing development. The alignment between Bridgepoint’s expertise and PEI Media’s growth strategy positions this partnership for mutual success in the rapidly evolving market.

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Given the significant growth trajectory of PEI Media, this acquisition by Bridgepoint Development Capital could be seen as a strategic move that positions both firms for success. The investment carries notable merit, as PEI Media has established a strong foothold in a fast-growing industry and is well-regarded for its innovative solutions and comprehensive insights.

Moreover, the deal highlights LDC's capacity to identify high-potential investments and generate substantial returns for its partners. The robust revenue growth and increased staff capacity at PEI Media underscore the effectiveness of LDC's support during the investment period.

However, it will be crucial for Bridgepoint to sustain and accelerate this growth by leveraging digital advancements and continuing to meet the evolving needs of investors. If they successfully adapt to market dynamics and enhance PEI Media’s value proposition, this investment could yield significant long-term benefits.

In summary, while the past performance indicates a positive outlook, the future success of this investment will depend on executing a robust strategy that capitalizes on emerging trends and maintains PEI Media’s competitive edge in the alternative asset management industry.

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