Forward Partners Venture Portfolio Value falls 26.4% on tech stock valuation headwinds

Forward Partners shares were flat at 46p in late morning trading on Thursday, after the firm reported an expected HY1 2022 Venture Portfolio Value at no less than £92 million, inclusive of £6.3 million in new investments in its recent trading update.

The movement represents a 26.4% fall exclusive of its new investments, as previously indicated in its FY 2021 results.

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Forward Partners announced an expected NAV per share not less than 83.4p per share, with cash per share expected to be 16.8p.

The company highlighted valuation headwinds from the slide in share prices at high growth tech stocks as the primary driver in the drop of its Ventures Portfolio Value.

The group confirmed the performance of its underlying portfolio remained strong, with an average forecast revenue growth of its top 15 portfolio investments by Fair Value of 40% to 60% for FY 2022.

Forward Partners added over 80% of its top 15 portfolio investments were anticipated to be on the path to breakeven without any additional fundraising, or had sufficient recourses to negate the requirement for fundraising for at least 18 months.

Meanwhile, the company made £6.3 million in investments over the financial term, including 12 follow-on investments worth £4.9 million and new investments in two high growth, early-stage technology groups, Baselime and Sonrai, at £1.4 million.

Forward Partners noted its top 15 portfolio investments accounted for 69% of its Venture Portfolio Value, with the most valuable company making up 9.8%.

The company mentioned investment in its top 15 companies to date totalled £25.8 million.