IP Group, the developer of intellectual property-based businesses, has established a 30m-pound venture capital fund, IP Venture Fund II, in partnership with the European Investment Fund (the EIF).
The group said that IP Venture Fund II would be expected to invest alongside IP Group in new spin-out companies from IP Group's university partnerships and other collaborations, with the EIF effectively investing alongside IP Group.
The fund comprises £30m of capital with a £20m contribution from the EIF and a £10m contribution from IP Group.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
It is expected to co-invest with IP Group in such ratio that the effective investment ratio between IP Group and the EIF will be four:one when considering that IP Group will also directly provide capital to companies alongside the fund, the group added.
Alan Aubrey, Chief Executive Officer of IP Group, said: "We are delighted to have agreed a second fund with the EIF; a key partner for the group who share a similar view on the importance of providing long-term patient capital to intellectual property commercialisation."
Piyush Unalkat, Principal of Equity Investments at the EIF, said: "We have been working with IP Group since 2006 and have been impressed by the group's ability to build valuable companies from the best of British intellectual property and evidence returns to co-investors and shareholders. We look forward to creating the next generation of spin-outs with the new Fund."
IP Group's share price was down 2.44% to 136.10p at 09:32 on Thursday.
MF
-
MoneyWeek news quiz: How much could you get in car finance compensation?The car finance scandal, inheritance tax, and house prices all made headlines over the past few days. Test your knowledge while reviewing this week’s top stories with MoneyWeek’s news quiz
-
The biggest fossil fuel financing banks – is yours on the list?You may not know it, but your savings could be being used to finance the fossil fuel industry. We look at the banks with the best and worst climate policies.
