British Patient Capital – Full Year Results for the period ending 31 March 2021

Key highlights:

In its third year, British Patient Capital has continued to deliver strongly against its business plan:

• Total value of portfolio commitments reached £1,293m across 51 funds and two co-investments
• Total commitments, including capital from other institutional investors, now total more than £7.3bn
• Nine new funds commitments ^{Read footnote text 1}  and two co-investments with a total value of £297m during the last year
• Commitments to the life sciences sector reach more than £150m via five fund investments

Achieving an attractive rate of return for the UK taxpayer ^{Read footnote text 2} :

• The total portfolio Internal Rate of Return since inception was 25.3% (7%) ^{Read footnote text 3}
• The portfolio TVPI was 1.51 ^{Read footnote text 4}  (1.15)

Notable investments during the year include commitments to:

• Balderton Capital’s inaugural venture growth fund
• Abingworth Bioventures 8, supporting companies developing novel therapeutics
• Evolution Technology Fund II, providing growth-stage finance to companies utilising big data and AI to tackle increasing cybersecurity challenges.
• UCL Technology Fund 2, bringing the academic research of world-renowned university, UCL, to commercial reality

Establishing our co-investment portfolio

As companies in the underlying portfolio mature and scale, British Patient Capital sees increasing opportunities to invest directly in the later-stage funding rounds of the most promising UK companies.

This year, British Patient Capital made its first two co-investments, investing alongside British Patient Capital fund managers into two of the most promising companies within its underlying portfolio: Quantexa’s $65m Series C funding round and Thought Machine’s $125m Series B funding round.

Co-investments will play an increasingly important role for British Patient Capital in achieving its vision for more home grown and fully-funded high growth companies to fulfil their potential to be significant players on the global stage.

Looking ahead, British Patient Capital will expand the capability and capacity of the investment team in order to increase co-investment activity and facilitate the delivery of Future Fund: Breakthrough.

Portfolio themes

While British Patient Capital is sector agnostic in its investment strategy, the underlying companies within our portfolio fall in to one of eight themes: Future of work and education (24%), Marketplaces and consumer (13%), Digital health and life sciences (18%), Big data and AI (12%), Future of finance (12%) and Clean growth, sustainability and mobility (7%), Cybersecurity (6%) and Frontier tech (5%).

• ^{Return to footnote location 1}

  All fund commitment figures refer to British Patient Capital and third-party mandates

• ^{Return to footnote location 2}

  All returns figures refer to British Patient Capital only

• ^{Return to footnote location 3}

  Figures in parathesis show returns for reporting year 2019/20

• ^{Return to footnote location 4}

  Total Value to Paid in Capital: the ratio of the current value of remaining investments within a fund, plus the total value of all distributions to date, relative to the total amount of capital paid into the fund to date