Schroders upgrades Revolut stake in former Woodford trust by 85 per cent
A Schroders trust formerly run by star stockpicker Neil Woodford has upgraded the value of its stake in Revolut by 85 per cent, implying the fintech firm is worth $48bn (£37.1bn).
The Schroders valuation would put Revolut, which has been mulling an IPO for years, above the $45bn it was valued at last summer, though below the $60bn shareholders are reportedly aiming for in a future float.
The Schroders Capital Global Innovation Trust’s stake in Revolut has jumped from being valued at £5.4m two years ago to £14.6m today, though the rest of its portfolio has seen a steep drop in valuation.
In its annual results today, the Schroders trust revealed that the value of its assets fell 21.2 per cent over last year, while its share price dropped 24.9 per cent.
Previously run by Woodford under the name Woodford Patient Capital, the trust’s shareholders voted overwhelmingly for it to wind down last month.
“Following the shareholders’ vote in favour of the managed wind-down of the company, our strategic focus has shifted to an orderly realisation of the company’s assets over a reasonable timeframe,” said the trust’s chair.
Public holdings in some of Woodford’s favourite stocks, like Oxford Nanopore and BenevolentAI, caused 97 per cent of the drop in valuation for the trust, while its position in Reaction Engines was written down to zero after the company entered administration.
However, the trust’s stock price jumped 30 per cent in a single day earlier this month after announcing holding Swiss biotech firm Araris Biotech was set to be acquired for $400m plus further contingent payments.
This means that its stake in Araris could be worth as much as £19.5m, compared with a value on its books of £2.8m at the end of last year.
The trust is expected to return around £30m to investors by 30 June, with further payments as part of the wind-down to follow.