Augmentum Fintech’s stake in peer-to-peer lender Zopa has been given a 60 per cent boost in the past six months, the investment trust’s half-year results show.
A stock market update from the fintech-focused fund for the six months to 30 September 2021 shows the value of its holding in Zopa increased from £9.5m in March 2021 to £15.2m by the end of the reporting period.
Zopa’s valuation has increased as it continues to attract investment to build its banking division.
Analysts at Numis highlighted that the Zopa valuation was still below the £19.6m cost of Augmentum’s investment.
Overall, the fund’s net asset value (NAV) per share rose nine per cent during the period from 130.4p to 142.1p.
As of the end of September 2021, Augmentum Fintech has invested £158.7m since inception and holds £43.8m, according to the update.
The pipeline of investment opportunities under review “significantly exceeds” the available cash, Augmentum said.
“The results reflect the continued potential of tech-led businesses and the efforts of many across our portfolio who seized opportunities from the recent step-change in financial services digital adoption,” Tim Levene, chief executive of Augmentum Fintech, said.
“We continue to see unprecedented levels of fintech investment activity across Europe but we remain mindful of the adage that not every good business is a good investment.
“Whilst there are many new investors who wish to build exposure to fintech at any cost, our long history and strong reputation in the sector will provide us access to opportunities that many others will struggle to see.”
A Numis analyst note said Augmentum was “well-placed” to benefit from the European fintech growth.
“It is positive to see the manager’s network and sector specialism helping to source opportunities and it is encouraging that the pipeline is strong,” the note said.