BOUTIQUE venture capitalist firm BP Marsh & Partners is on the cusp of announcing an acquisition after selling its stake in insurer Hyperion.
The company – which makes early stage investments in financial services businesses – yesterday said it is in the “final stages of completing a new investment” as it unveiled a ten per cent rise in year-end asset value to £55.5m.
“We expect major developments and changes to take place in our portfolio over the coming months,” said chairman Brian Marsh.
The Hyperion cash will be a welcome windfall for BP Marsh, which first invested in the insurer back in 1994. Earlier this year it sold the majority of its stake in Hyperion for around £29m rather than wait for a planned IPO. It will now use this money to invest in other start-ups that need its help.
Panmure Gordon analyst Barrie Cornes said the Aim-listed shares are trading at a discount to net asset value but urged caution for investors.
“We maintain our hold recommendation and 130p target price reflecting the uncertainty over what will happen to the Hyperion proceeds and a flagged new investment likely to be announced in the next week or so,” he explained.