With the fintech boom continuing, we take a closer look at growth opportunities for Augmentum
Augmentum Fintech (AUGM)* will publish its first full-year report on 11 June 2019. Since its IPO on 13 March 2018, the company has deployed its capital successfully and is now 73% invested with £15m of cash earmarked for follow-on-opportunities within existing portfolio companies. In 2019, the company has made four additional investments, a £7.5m investment in SME lender iwoca and a £4.0m investment in legal services platform Farewill as well as a £4m investment in Onfindo and a £0.9m investment in Intellis.
As at the last NAV on 30 September 2018, the unrealised annualised IRR on the seed portfolio of 30% was well in excess of the long-term IRR target of 20%, with a 5% uplift in NAV since the IPO. Furthermore, the shares of the company are currently trading at a 4.8% premium to NAV, reflecting the strong investor demand for the company and its future growth opportunities.
We share this optimism about the future growth opportunities for AUGM since the fintech boom continues unabated and traditional financial services companies are increasingly competing in the space to avert the challenge from disruptive start-up companies. This provides a fertile environment for experienced investors who can select the most attractive deals and benefit from long-term increases in deal sizes and valuations.
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* Current corporate client of Fidante Capital.