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Exploit this fintech fund’s 31% discount

The first publicly listed fintech fund has maintained its track record of delivering NAV growth every year
June 25, 2024
  • NAV per share up 5.4 per cent to 167.4p
  • Eye-catching revenue growth at top 10 holdings
  • Two more profitable exits
  • Cash of £44.8mn (26p)
  • 31 per cent share price discount to NAV

Augmentum Fintech (AUGM:115p), the first publicly listed fintech fund, has maintained its impressive track record of delivering net asset value (NAV) growth every year since IPO in 2018. Moreover, the investment company has profitably exited two more holdings: savings provider Cushon – sold to NatWest (NWG) – and British artificial intelligence (AI) customer identity verification start-up Onfido (sold to Entrust post period-end). It means that Augmentum has now sold six holdings for £89.6mn since inception, realising an eye-watering 170 per cent profit on cost.

The combination of realisations and ongoing operational progress from the portfolio of 25 investee companies, which have a combined valuation of £259mn (adjusting for the Onfido exit), explains why the fund has generated an internal rate of return (IRR) of 16 per cent on invested capital since inception. However, even though Augmentum’s cash pile and the combined valuation of its four largest holdings are worth more than its own market capitalisation of £195mn, the shares are priced on an unwarranted 31 per cent discount to NAV per share of 167.4p (post performance fees).

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