IP Group - 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 FY22–26 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%).