IP Group Trust (IPO): Initiation — Internatio...
|
Edison Investment Research Limited
London, UK, 13 September 2022
IP Group Trust (IPO): Initiation — International investor in impactful innovation IP Group is well-financed and trading at a discount of c 50% to its H122 NAV/share (137p), which we believe represents a compelling opportunity for long-term and impact investors. If management can deliver on targeted average gross returns of 20% for H122–H127 through a renewed focus on its priority companies, we believe IP Group’s discount to NAV would narrow, further lifting average annual NAV/share over this timeframe. IP Group provides liquid exposure to a growing portfolio of high-growth science-based start-ups from its international ecosystem. The company invests primarily in life sciences, deep tech and renewables, and is increasingly focused on companies that will have an impact, to deliver a sustainable, healthier and tech-enriched future. After a 15+ year gestation period, its model appears to have started to mature in FY19, with returns and realisations accelerating (FY19–21 NAV/share growth of 24%).
IP Group has delivered a gross IRR over its 20-year life to FY21 of over 14%, with a more recent two-year NAV per share CAGR of 24% FY19–21. Management aims for venture returns and as such is targeting 20% on average over the next five years to FY26 as the group accelerates its portfolio of priority companies, a number of which are close to value inflection points. IP Group is well-financed and currently trading at a c 50% discount to its latest H122 NAV (137p), and we believe this represents a compelling opportunity for long-term and impact investors.
All reports published by Edison are available to download free of charge from its website About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached – across institutions, family offices, wealth managers and retail investors – Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings. Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison’s reports are not solicitations to buy or sell any securities. For more information, please contact Edison: Richard Williamson +44 (0)20 3077 5700 tech@edisongroup.com Dan Ridsdale +44 (0)20 3077 5729 tech@edisongroup.com Learn more at www.edisongroup.com and connect with Edison on: LinkedIn www.linkedin.com/company/edison-group-/ Twitter www.twitter.com/Edison_Inv_Res YouTube www.youtube.com/edisonitv
Dissemination of a CORPORATE NEWS, transmitted by EQS Group. |
1440203 13-Sep-2022
Latest directors dealings
- 40 minutes ago Trekor Metals Limited
- 40 minutes ago ECR Minerals
- 40 minutes ago Zotefoams
- 14 hours ago Luceco
- 14 hours ago Helios Towers