Molten Ventures - A technology investment for all seasons

Driven by the marked rotation out of tech seen in January and in line with the sector, Molten’s share price has dropped over 30% since its peak of 1,180p in September 2021 and over 20% since the start of the year. However, in its trading update, management reiterated its target of 35% expected fair value growth in FY22, which we estimate implies c 25% NAV per share growth year-on-year, or FY22 NAV per share of c 929p per share (FY21 743p, H122 887p). At yesterday’s close, Molten traded at 0.84x our estimated FY22 NAV per share. It sees continued deal flow, with £259m invested YTD (10 months) including c £106m committed to 12 primary deals and c £153m committed to follow-ons. Management still sees a healthy pipeline of investment opportunities ahead. Cash proceeds from realisations reached £110m. Molten’s portfolio companies saw strong revenue growth in 2021, which is forecast to continue for 2022. Management is confident that, whatever the weather, Molten Ventures remains a technology investment for all seasons. The material discount to NAV should make Molten Ventures particularly attractive to potential investors.