Fintech fund Draper Esprit posts 50 per cent profit rise

Draper Esprit posted a more than 50 per cent profit hike after the fintech fund saw a rise in the value of its start-up portfolio and made partial exits from some firms.

The London-based firm – which owns stakes in Revolute, N26 and TransferWise – said its profit after tax lifted to £59m in the six months to the end of September, compared to £39m a year ago.

The fund, which invests in early-stage European tech firms, said the value of its portfolio of 57 companies grew by £70m to £683m over six months due to a strong performance among its core holdings.

It made partial exits from foreign exchange platform TransferWise, software firm UiPath, the, and technology recruitment fintech Codility, during the period, raising £22.7m.


Portfolio strength

Draper Esprit chief investment officer Simon Cook (pictured, centre) said: “The strength of our balance sheet means that we have retained the necessary firepower to invest in the right businesses at the right valuations. Furthermore, our portfolio provides us with a natural hedge against the weakness of sterling given that many of our core assets, due to their global reach, trade in euros and dollars.”

The firm fund invested £42m in five new firms and nine start-ups already in its portfolio during the period. It injected a further £15m into the portfolio from its Enterprise Investor Scheme and Venture Capital Trust funds.

Draper Esprit said it remained on course to hit a 20 per cent return on its portfolio for the full year. Shares lifted 3 per cent in early trading.

All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Roger Baird

Roger Baird

Roger Baird is News Editor at Finixio. He has worked as a financial journalist for 20 years reporting on companies, capital markets and the UK economy.
HTML Snippets Powered By : XYZScripts.com