By Daniel Lanyon on 27th September 2018
The investment company, launched just 18 months ago, is listed on the Alternative Investment Market.
Draper Esprit, a venture capital focused portfolio that provides investors with access to many of Europe's technology innovators, is an attractive ‘buy’, according to analysts at investment bank Liberum.
The team behind the portfolio has over 20 years of experience in scaling high-growth technology companies with a long term outlook to build value over time, Liberum says. The company's NAV has increased by 36 per cent since inception in June 2016.
“We expect c.43 per cent NAV growth in the two years to 31 March 2020. We are initiating on Draper Esprit with a BUY recommendation,” Liberum said.
Draper Esprit saw aggregate average annual turnover growth of the core portfolio was 58 per cent and it has completed 10 exits since IPO with an average cash exit multiple of 3.15x.
Liberum says that with €17bn of VC deals in 2017, dry powder and government support in the UK and Europe for home grown companies growth in the sector is robust.
“We assume a 40 per cent y-o-y growth of the core portfolio and £120m in acquisitions for the next two years. Our TP of 700p is based on a 10 per cent premium to the March 2020 NAV,” it added.
Now in its sixth year, the AltFi London Summit returns on 18th March 2019 to 155 Bishopsgate. Last year proved to be a crucial turning point for the key players building the future of finance. Leading platforms launched oversubscribed IPOs, digital banks proliferated and mainstream financial institutions started their own disruptive propositions. With 2019 certain to be another landmark year, more questions will be asked by regulators with investor interest in disruption also poised for more rapid growth.