Augmentum Fintech sees boost in returns from Tide stake

By Daniel Lanyon on Wednesday 25 September 2019

Alternative LendingDigital BankingSavings and Investment

The fintech focused investment trust has made a number of investments into firms disrupting banking, insurance, asset management and the wider financial services sector.

Augmentum Fintech sees boost in returns from Tide stake
Image source: Photo by from Pexels

Augmentum Fintech has seen an uplift in its stake in SME digital bank Tide, thanks to its credit-linked note (CLN) converting into equity.

The fund’s investment in Tide comprised a number of convertible instruments, which now impl a revised valuation of approximately £14.2m.

In a stock market update, the trust said: “This implied valuation would represent a total uplift of approximately £4.2 million compared to the carrying value of the Company’s investment in Tide (being the last reported fair value of the Company’s holding of £4.975 million as at 31 March 2019 combined with the Company’s £5 million further investment into Tide in June 2019).” 

The implied valuation equates to an increase of approximately 3.6 pence per ordinary share to the Company’s last reported net asset value (“NAV”) per ordinary share of 109.6 pence as at 31 March 2019.

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