A trust previously managed by renowned stockpicker Neil Woodford, now under Schroders, has increased the value of its stake in fintech firm Revolut by 85 per cent. This suggests a valuation of $48bn (£37.1bn) for Revolut, surpassing its $45bn valuation from last summer but falling short of the $60bn target reportedly set for a future float.
The Schroders Capital Global Innovation Trust's investment in Revolut has soared from £5.4m two years ago to £14.6m today. However, the rest of its portfolio has experienced a significant decrease in value.
In its annual results released today, the Schroders trust reported a 21.2 per cent decline in asset value over the past year, with its share price falling by 24.9 per cent., as reported by .
Formerly known as Woodford Patient Capital under Woodford's management, the trust's shareholders voted overwhelmingly last month for it to wind down.
"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," stated the trust's chair.
Public holdings in some of Woodford's preferred stocks, such as Oxford Nanopore and BenevolentAI, accounted for 97 per cent of the trust's valuation drop. Meanwhile, its stake in Reaction Engines was written off completely after the company went into administration.
However, the trust's share price soared by 30 per cent in a single day earlier this month after it announced that its holding in Swiss biotech firm Araris Biotech was poised to be acquired for $400m plus additional contingent payments.
This implies that its stake in Araris could be valued at as much as £19.5m, compared with a book value of £2.8m at the end of last year.
The trust is projected to return approximately £30m to investors by 30 June, with more payments expected as part of the wind-down process.
