IP Group — Exit target of over £250m by end-FY27 reiterated

IP Group (LSE: IPO)

Last close As at 17/09/2025

GBP0.53

−2.70 (−4.86%)

Market capitalisation

GBP476m

More on this equity

Research: TMT

IP Group — Exit target of over £250m by end-FY27 reiterated

IP Group continues to deliver a meaningful level of realisations with £30.3m in proceeds generated in H125, more than two-thirds of which came from four life sciences companies (Intelligent Ultrasound, Centessa, Abliva and Hinge Health). Importantly, management reiterated its target of delivering over £250m in realisation proceeds between FY25 and FY27, which excludes any potential exit proceeds from Oxford Nanopore (ONT) and represents roughly 50% of IP Group’s current market capitalisation. IP Group’s NAV was supported by the rising share price of ONT, and the successful IPO and subsequent performance of Hinge Health (for which IP Group’s lock-up expires in November 2025). This was offset by a net decline in the carrying values of private holdings, most notably Oxa Autonomy and Artios Pharma due to funding delays, and £14.2m of fx headwinds. This led to a slight 1.5% fall in NAV in H125 to 96.2p, which was more than reversed post reporting date by the continued strength of listed holdings, bringing IP Group’s NAV to c 100p as of 12 September 2025.

Milosz Papst

Written by

Milosz Papst

Director of Content, Investment Trusts

Investment companies

Listed venture capital

18 September 2025

Price 52.80p
Market cap £475m
Shares in issue 899.3m
Code/ISIN IPO/GB00B128J450
Primary exchange LSE
AIC sector N/A
Financial year end 31 December
52-week high/low 62.5p 34.5p

Fund objective

IP Group helps to create, build and support IP-based companies internationally. The group focuses on companies that meaningfully contribute to regenerative (Kiko), healthier (life sciences) and tech-enriched (deeptech) futures. The group is mostly active in the UK, with an international footprint through investment platforms in Australia, New Zealand and the United States.

Analysts

Milosz Papst
+44 (0)20 3077 5700
Dan Ridsdale
+44 (0)20 3077 5700

IP Group is a research client of Edison Investment Research Limited

IP Group’s portfolio exits fuel continued NAV-accretive share repurchases, with a £25m programme completed in H125 (allowing the company to retire 6% of its share capital in H125) and a £20m extension programme in progress. Management had announced, upon the release of IP Group’s 2024 results, that it would allocate 50% of the FY25 exit proceeds to share repurchases (vs c 20% historically).

Overall fund-raising across IP Group’s portfolio reached £372m in H125, broadly in line with £380m in H124 and compared to c £1.0bn per year on average in 2018–2024. This included seven up-rounds, one round at a stable valuation and five down-rounds. Consequently, cash runways across the portfolio are generally solid, with only 8% of holdings (valued at more than £4m) by value needing to raise funding in H225 and 29% in 2026, and the rest having a cash runway until at least 2027 or funded through to break-even. IP Group remained disciplined in capital deployment with £35.7m invested across 21 companies in H125 (88% into existing companies), including First Light Fusion (£5.0m), Fortify Solutions Cambridge (£3.7m), AccelerComm (£3.0m), Intrinsic (£2.5m) and Ultraleap (£2.5m). IP Group’s balance sheet position remains robust, with £237.3m of gross cash and deposits, or £111.3m net of borrowings, at end-June 2025.

Recent technical and commercial highlights across IP Group’s private portfolio include: 1) Istesso’s revised approach to leramistat (see our previous research for details); 2) Hysata approaching the commissioning of its 100kW system in Q325 and running a field trial in Saudi Arabia; 3) First Light Fusion’s pivot to become an IP-rich technology provider; 4) Pulmocide’s positive safety data and good progress in its Phase III trial recruitment for opelconazole for invasive pulmonary aspergillosis; and 5) the solid reported and expected revenue growth of Genomics.

Management highlighted progress in attracting third-party capital, with £24m raised in H125 by ParkWalk (bringing the total external assets under management to £663m at end-June 2025) and good traction of scale-up capital discussions, with management confident in securing one new mandate before the announcement of FY25 results.

NOT INTENDED FOR PERSONS IN THE EEA

General disclaimer and copyright

This report has been commissioned by IP Group and prepared and issued by Edison, in consideration of a fee payable by IP Group. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright 2025 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or sol icitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

More on IP Group

View All

Latest from the TMT sector

View All TMT content

Research: Healthcare

Newron Pharmaceuticals — H125 results reflect evenamide progress

H125 saw Newron Pharmaceuticals make significant clinical headway with lead asset evenamide, culminating in the initiation of the first Phase III study, ENIGMA-TRS 1 (international study excluding the US; n=600), by period end. As of August, the first patients have been enroled (following a 42-day screening period) and the 12-week results are expected in Q426. The second study, ENIGMA-TRS 2 (international study including the US; n=400), is set to begin in October, the outcome of which will be key for US regulatory registration. Partner progress in Japan (with EA Pharma) triggered a milestone payment, which, together with the upfront consideration from Myung In Pharm (South Korea), lifted H125 licensing revenue to €7.8m (nil in H124). We expect period-end cash and equivalents of €43.2m to provide a runway into Q226 (accounting for debt repayments). Our valuation upgrades modestly to CHF407.8m or CHF20.4 per share (from CHF392.4m or CHF19.7 per share previously).

Continue Reading

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free