Investment Summary

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Investment Summary

IP Group is a UK investor backing the scientific discoveries that shape our future. Their portfolio companies share a common goal – to have a positive impact on the world around us, whether that be through life sciences, cleantech or deeptech.

FREQUENTLY ASKED QUESTIONS

Istesso receives FDA fast track and orphan drug designation

Portfolio holding Istesso has received Fast Track designation from the US FDA for its investigational metabolic reprogramming agent, MBS2320, intended for treating patients with idiopathic pulmonary fibrosis (IPF). The Fast Track designation expedites drug development for serious conditions with unmet medical needs, and MBS2320 has also been designated an orphan drug for IPF, making Istesso eligible for development incentives and market exclusivity in the US. Read More

What's the next 'big thing' within the portfolio?

Two companies that stand out are Hysata and Istesso. Hysata is the world's most efficient hydrogen electrolyser company and has made significant technological process this year. It has received an incredibly high level of commericial interest for such a young company.Istesso discovers and develops drugs for severe chronic diseases such as rheumatoid arthritis. Its current lead compound is in clinical trials and has shown promising signs that it may act as a cure to the underlying condition as well as just treating symptoms.

How can IP Group close the discount to NAV?

IP group expects significant inflection points from the underlying portfolio in the next 12-18 months to drive net asset value [NAV] per share. The capital allocation policy is to reinvest the majority of cash proceeds, with a smaller portion returned to shareholders. Since the adoption of this policy in 2021, IP Group has returned over £70m to shareholders.IP Group is also making significant strides to boost its investor relations efforts and tell the equity story worldwide.

What are the key challenges IP Group face and how might they be mitigated?

The two main challenges IP Group faces in the current market conditions are capital allocation and performance.In the difficult market conditions there are less exits and its hard to raise capital. This means IP Group must be prudent in managing its cash in terms of investments and returns to shareholders. IP Group is in a strong position, holding lots of cash and liquid assets. Despite difficult markets, IP Group portfolio companies need to continue to perform. In the near-term, this means successful clinical trials for some of the therapeutics companies and continued growth in their deeptech holdings.

What is IP Group's valuations approach for the underlying portfolio companies?

IP Group uses a conservative approach to valuations. Transparency and rigour around its approach is paramount. A substantial proportion of the portfolio is valued at a public share price, or the price of the last funding round. For a significant value of the portfolio, IP Group also gets an independent valuation produced. The Group’s external auditors typically sample more than 90% of the portfolio. For a deeper dive on the valuations approach, see the IP Group carousel below.

Are there any policy initiatives that might benefit IP Group?

In the UK there's an increasing discussion around long term capital supporting growth. This includes pension funds directing more capital into private assets and growth assets with the aim of stimulating the economy. IP Group is positioned well to benefit from this.

IP GROUP

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KEY SOCIALS & INFLUENCERS

Portfolio Companies

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COMPANY RESEARCH

ARTICLES

05/12/2022

Istesso receives FDA fast track and orphan drug designation

02/08/2023

IP group in support of UK investment-boosting reforms

IP Group supports reforms aiming to boost investment in the UK’s high-growth companies. CEO Greg Smith notes widespread sector support for measures such as the Mansion House Compact, seeking to channel £75bn...

9/10/2023

Google takes stake in Oxa

Google has invested in portfolio company Oxa, an autonomous driving software developer, taking a 3.5% stake in the company. The investment was part of Oxa's £115m Series C funding round in January, which also saw support from Tencent, Ocado, ENEOS, and...

11/12/2023

Autifony and Jazz Pharmaceuticals sign licensing agreement

Autifony and Jazz Pharmaceuticals have signed a licensing agreement. The agreement involves Autifony discovering and developing drug candidates for two ion channel targets ...

25/10/2023

Featurespace launches fraud preventing generative AI model

Portfolio company Featurespace has introduced TallierLTM™, the world's first Large Transaction Model (LTM) designed for the payment and financial services industry...

05/04/2022

First Light Fusion's breakthrough in fusion energy technology

The article discusses First Light Fusion's breakthrough in fusion energy technology, highlighting their successful achievement of 10 million degrees Celsius plasma temperatures.

Greg Smith

Chief Executive Officer

Greg was appointed Chief Executive Officer in October 2021, having previously been IP Group's Chief Financial Officer. He has more than 20 years’ experience in financial services and has significant investment management experience.

David Baynes

Chief Financial & Operating Officer

David was appointed to the IP Group Board in March 2014 following the acquisition of Fusion IP plc, a company he co-founded in 2003. While at IP Group, David has sat on a number of portfolio company Boards.

Sir Douglas Clint, CBE

Non-executive Chairman

Sir Douglas joined the Board of IP Group in September 2018 and took on the role of Chairman in November that year. Amongst other roles, he is currently Chairman of abrdn plc, Chairman of the Royal Marsden Hospital and Charity, and a Director of the Centre for Policy Studies.

Joyce Xie

Managing Director, Global Capital

Joyce joined IP Group in 2016 and has led many cross-border investment transactions. Joyce is one of the founders of IP Group Greater China, helping IP Group and portfolio companies build capital, market and industry partnerships in the Greater China region.

Dr Mark Reilly

Managing Partner, Technology

Mark is an impact-focused technology business builder, investor and board director. He has overseen more than 200 private and public company venture transactions and has well over a decade of experience sitting on technology company boards.

Dr Sam Williams

Managing Partner, Life Sciences

Sam has led Life Sciences at IP Group since 2018, during which time he has significantly grown the division. He brings over 30 years in the biotech sector, as research scientist, investment analyst, entrepreneur and company director. He was the founding CEO of Istesso.

Liz Vaughan-Adams

Director of Communications

Liz started her career writing about tech as a journalist before supporting tech companies with their communications strategies. Liz leads IP Group’s communications function and is a member of the Group’s Executive Committee, Disclosure Committee and ESG Committee.

Moray Wright

CEO Parkwalk Advisors

Moray’s 30-year career has been all around investing. Prior to co-founding Parkwalk in 2009 he worked at various leading investment banks. He is CEO of Parkwalk, the third-party fund management subsidiary of IP Group.

General disclaimer and copyright

This showcase has been commissioned by IP Group and prepared and issued by Curation, in consideration of a fee payable by IP Group. Fees are paid in cash without recourse. Curation may seek additional fees for the provision of content and related IR services for the client but does not get remunerated for any investment banking services.Accuracy of content: All information used in the publication of this showcase has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this showcase and have not sought for this information to be independently verified. Opinions contained in this showcase represent those of Curation at the time of publication. Forward-looking information or statements in this report may contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.Exclusion of Liability: To the fullest extent allowed by law, Curation shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this showcase.No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Curation's solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.Investment in securities mentioned: Curation does not itself hold any positions in the securities mentioned in this report, nor the analysts who responsible for compiling this showcase. However, the respective directors, officers, employees and contractors of Curation may have a position in any or related securities mentioned in this showcase, subject to Curation's policies on personal dealing and conflicts of interest.

United Kingdom

This document is prepared and provided by Curation for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

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KEY INFO