Strong H1, exits up sharply, solid portfolio FV rise

Strong H1 performance, NAV per share increased to 114p at H1 and c.117p by 11 September, driven by portfolio fair value gains, successful exits and positive developments across key holdings. Our Fair Value increases to 111p, with the shares trading at a c.41% discount to Fair Value. 

Exits and cash generation remain a key strength, with £69m realised in H1 and a further £17m post period-end, leaving IP Group well on track to achieve its £250m three-year realisation target. Net cash increased to £119m, supporting both new investment activity and future shareholder returns. 

Portfolio value creation was led by healthcare and deep-tech holdings, including a £27m uplift in the Pfizer obesity-drug royalty interest, positive clinical data at Microbiotica and funding progress at First Light Fusion. Post period-end updates from Oxford Nanopore, Mission Therapeutics, Nexeon and Oxa Autonomy provide further support for NAV growth. 

Growing third-party AUM adds a more predictable earnings stream, with progress on the Aberdeen mandate and launch of the A$50m Climate Catalyst Fund in Australia. While fee income was lower in H1, management continues to prioritise scaling assets under management alongside portfolio exits.