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(Alliance News) - Venture capital firm Draper Esprit PLC on Tuesday reported a rise in net assets, in line with its growth targets.
The digital technology investment firm's NAV per share at September 30 stood at 574 pence, up 26% from 454p at the same point a year earlier, and 9.5% higher than the 524p seen six months earlier.
Draper Esprit's net assets also grew 9.5% over the six month period to GBP677.5 million from GBP618.6 million.
The company's portfolio ended the period valued at GBP683 million, up 15% from GBP594 million at March 31. This represents a fair value increase of GBP70 million, or 12%, which is in line with management targets.
The core portfolio's value increased by 17% in the interim period to GBP485 million from GBP415 million.
"The strength of this performance has been driven by ongoing trading gains across our portfolio, combined with positive valuation uplifts following successful funding rounds, particularly from Ravenpack and Pollen (formerly Verve), alongside GBP22.7 million from cash exits, supportive of NAV," the company explained.
Chief Investment Officer Simon Cook added: "We have recorded a strong first six-month performance and our 12% fair value increase during the period means that we are on track to deliver our stated 20% annualised portfolio return target.
"We have maintained a prudent approach to investment, ensuring that all our portfolio companies meet our strict investment criteria. The strength of our balance sheet means that we have retained the necessary firepower to invest in the right businesses at the right valuations. Furthermore, our portfolio provides us with a natural hedge against the weakness of sterling given that many of our core assets, due to their global reach, trade in euros and dollars."
Co-founder Cook was recently Draper Esprit's chief executive officer but was moved to CIO in November.
He was replaced as CEO by Martin Davis, who most recently was chief executive officer of investment management business Kames Capital PLC.
Looking ahead, Cook said: "We continue to see a range of exciting and high growth technology companies across the sectors in which we operate and remain focused on executing our strategy of providing early and growth-stage technology companies with the capital, network, and support they need to pursue their global growth plans. We are now in a better position than ever to capitalise on these opportunities and support companies across all stages of development and are delighted to have announced the addition of Martin Davis as chief executive officer."
Draper Esprit ended the period with GBP126 million in available funds, including GBP50 million from its enterprise investment scheme and venture capital trust funds.
Shares in Draper Esprit were 1.7% higher in London on Tuesday at 473.00 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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