Augmentum Fintech seeks backing for 150m share issue
ZOPA-backer Augmentum Fintech is set to seek shareholder approval to issue a further 150m of shares over the next 18 months to back £450m worth of potential investments.
The fintech-focused investment trust’s shareholders will be able to vote on the move at a general meeting on 1 July.
It comes as the fund released its first set of annual results since launching last year, which revealed its initial public offering (IPO) proceeds are now “substantially fully committed.”
Its net asset value (NAV) has grown 10.7 per cent since launch in March 2018.
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The investment trust reported its returns were boosted by strong performance at Zopa, which is its biggest holding at 28.3 per cent of the portfolio, and the investment platform Interactive Investor.
“In our first year we have seen some 675 opportunities and have invested in nine of them,” Tim Levene, chief executive of Augmentum Fintech Management, said.
“The strength of our deal flow reflects the scale of the opportunity and we believe that Augmentum is uniquely positioned to take advantage of this.
“Our strategy remains to back some of Europe’s most exciting early and growth stage fintech businesses that are disrupting the traditional financial services industry.
“Every investment we have made, whether primary, secondary or within the initial portfolio, all demonstrate many of the same characteristics.
“These include strong long-term unit economics, a compelling path to profitability, high growth potential, excellent management teams, and the potential to create a market leading position.
“Our initial portfolio has seen positive activity in the last 12 months, leading to revaluations of some of our holdings.
“The adjustment in valuations for Zopa, Interactive Investor and BullionVault has resulted in the NAV of our initial portfolio increasing by an annualised internal rate of return of 28 per cent since IPO.
“It is early in our evolution, but we continue to be pleased with the make-up of our portfolio so far.”
Augmentum Fintech is currently trading at a premium to NAV of 5.8 per cent.