Schroder Uk Public Private Share Discussion Threads

[spectoacc] 27/1/2021 10:38

@riskv - Kymab sale will raise the NAV, more than offsetting today's news, but "very positive" it ain't.

[riskvsreward] 27/1/2021 10:35

This is now trading at 20% discount to the nominal NAV. If they have to sell their best assets at 22% discount it says this is signifcantly overpriced with all the risk and little likelihood of return. I am out now to put money to better use.

[spectoacc] 27/1/2021 10:29

True, and in fairness they've left a little upside on eg Immunocore. But why on earth do this now - not only do they not need the money to survive, but if the ones they're selling need more funding, an ON flotation would provide that.

Market reaction says it all about this "very positive" announcement. And if these took a 22% discount to get away, imagine what the junkier tail is worth - Spin Memory heading to zero (see ALM RNS's), IH should already be zero etc.

Not sold any, awaiting ON news later in year.

[scrapheap] 27/1/2021 09:15

So going to be debt free then but seems an even more concentrated portfolio - will be interesting to see the NAV breakdown when it's provided in April! The 'partial holdings' sales are hard to judge as we aren't told how much is retained...

[spectoacc] 27/1/2021 07:35

Worth repeating what they say:

"Tim Creed and Ben Wicks, Portfolio Managers of the Company, jointly commented: "After the announcement of the acquisition of Kymab by Sanofi and the extension of the Company's credit facility by two years, this is the third very positive announcement for the Company so far in 2021."

"Susan Searle, Chair of the Board of the Company, commented: "I am extremely pleased with the progress that Schroders have made since taking over the management of the portfolio. The three announcements made in 2021; the extension of our debt facility, a significant portfolio company cash exit and a portfolio sale put the Company in a solid position from which to grow in 2021."


Again, when the crisis at SUPP was existential, the OD a real risk, the shares at a 40%+ discount to "N"AV, then fair enough - sell for survival. But that just isn't the case now - the OD's been rolled for 2 years, Kymab cash is coming in, and ON is due to float this year.

If it was all about RUTH, ATOM, and ON, it's even more so now.

[steeltrader9] 27/1/2021 07:26

Yeah I am literally speechless, this is an awful decision and the team have a lot of explaining to do! These are some of the most promising holdings in the portfolio and whilst there is a eurphoria in the market around biotechs with a lot of M&A activity at massive premiums, why would you sell them all at a discount??

I bought in as I thought this new team was competent but very unsure now.

[spectoacc] 27/1/2021 07:11

Hmm I find today's deal/RNS bizarre. Why do this now, when the OD is finally not going to be a problem anymore thanks to Kymab? And why are Tim and Susan trumpeting this as a great deal? Selling at a 22% discount to NAV.

No wonder they've been keeping quiet about the Immunocore float - they'd already agreed to sell.

Still long, at avg under 30p, but didn't see this coming. This was the deal to do a year ago IMO.

S/p reaction will be interesting - as likely up as down.



"The Company (LSE: SUPP) is pleased to announce that it has signed a sale and purchase agreement for the sale of a basket of seven assets (the "Sale Portfolio") to Rosetta Capital VI, LP (the "Buyer"), an investment fund managed by the UK-based life science venture capital firm Rosetta Capital Limited, for a total acquisition price of £49.0 million (the "Transaction"). The Sale Portfolio consists of the Company's entire holdings in Carrick Therapeutics, Mission Therapeutics, PsiOxus Therapeutics and Mereo BioPharma and partial holdings in Inivata, Immunocore and ReNeuron. The agreed acquisition price represents a discount of 22 per cent to the aggregate valuation for those holdings reflected in the Q3 2020 Net Asset Value ("NAV") as at 30 September 2020 (as published on 3 December 2020) or a discount of 19% per cent adjusted for relevant foreign exchange rate changes as of 25 January 2021.

The Buyer has also agreed to pay approximately £2.9 million to the Company representing the value of certain follow-on investments made by the Company with respect to holdings contained in the Sale Portfolio during January 2021. In total, the Company expects to receive initial proceeds from the Transaction of approximately £51.9 million."

[lewis121] 18/1/2021 13:31

Thanks Specto.

[lewis121] 18/1/2021 13:31

Thanks Specto.

[spectoacc] 18/1/2021 13:20

Was 5th largest holding at last Factsheet, c.6% of SUPP. Not sure how float relates to what it's in the SUPP NAV at - will need to look it up - nor if the float is to eg let former-WEIF out? If not, could be a boost to be had. Immunocore one of the better ones, albeit small holding. And a good counter to RUTH's need for more cash this morning.

Edit - misread it, $100m is what they plan to raise, not sure on mkt cap but was c.$900m previously.

Former-WEIF holding was part of the block "gifted" to Acacia.

[lewis121] 18/1/2021 13:04

Have we still got Immunocore?

[j4ckthehat] 18/1/2021 07:10

From ISchroder UK Public Private (LSE:SUPP) (formerly Woodford Patient Capital) is on a 33% discount having traded 10 points wider last summer. This trust has benefited from some very good news for individual portfolio companies. Also notable to us are the private equity trusts. There are a handful trading on a discount in the mid-20s, which we think could prove interesting.As we have discussed previously, in a rising market the discounts are often understated due to the infrequent posting of NAVs, so the real discounts could easily be in the 30s given the strong rally in the markets over Q4 of 2020. We will be conducting a thorough review of the sector in an upcoming strategy note.

[goingforgold1] 16/1/2021 22:28

Rutherford Health now commissioned to provide its Proton Beam Therapy to NHS England. Seems like this will lead to more patients coming through its doors rather than being sent overseas for treatment.

[1tcm1] 15/1/2021 11:45

Here's a copy of a notice sent to spectoacc by special delivery from both Tesco and Morrisons:


"One-in, one-out


We continue to limit the number of people in our stores and we have a ‘one-in, one-out’ system in place to ensure social distancing.



Wait for the green light



We have introduced a traffic light system at more than 1,300 of our store entrances. The system monitors numbers and will light up green when you can safely enter. If the light is red, then the limit has been reached and our colleagues will ask you to join a queue outside the store."





I understand they've employed some Stasi Officers from the Labour Exchange in case spectoacc turns up.

I understand, too, that spectoacc has not yet received the notice because he is in Washington helping his Trumpite friends storm the Capitol.

[skyship] 14/1/2021 13:53

Ah, thnx for that. I always just refer to them as the MMs...

[spectoacc] 14/1/2021 13:21

RSP - Retail Service Provider - the online quote providers :)

[skyship] 14/1/2021 13:18

Thnx. Yes, I suppose on the back of that 153k bought at 35.2p @ 11:39

Sorry - RSP? Retail share price perhaps...

[spectoacc] 14/1/2021 13:13

Well done @Skyship, can't go bust taking a profit :) Going higher I reckon but that's an interesting RSP bid, 34.53p.

[skyship] 14/1/2021 13:08

Well, c15% in haste, so took the turn at a surprising 34.5p.

I always sell too soon; then have to search for the next best thing. Still, after over 50yrs of this game, too late now to learn new tricks!

[spectoacc] 14/1/2021 13:00

"This needs quite a lot more to reach escape velocity."

I'm not sure there's a long term resolution to SUPP. It's still 100% Woodford's junk. If eg ON gets a decent float away, there's a scenario where Schroder Juniors could have say £50m to invest (keeping a little gearing). But that would be what, 15% of the Trust? 85% would remain in concentrated Woodford picks, ones that still hadn't achieved much in nearly 6 years.

Worse, most are diluting SUPP since they need more cash. Particularly the big ones - RUTH, ATOM, Benevolent. SUPP will gain a few spare million from Kymab post-OD reduction but that's as likely to be used to keep smaller ones alive.

And yet what hope of winding it up? Former-WEIF still can't offload the last of the bad junk there, much of it held in common with SUPP. Look how much profit they gave to Acacia Research for the better stuff.

So it's in everyone's interests except shareholders to keep it rolling on, paying fees and salaries and expenses. Link wins, NT wins, Susan Searle & co win, advisors win, Schroders win with their c.£3m pa.

If the Schroders boys somehow achieve their Q4 "totally different" portfolio this year, I'll change my mind & also eat my hat. In the meantime, happy to be long whilst it's going up.

[chucko1] 14/1/2021 12:52

As it happens, UK Base rate is 10bps and 3m Libor is 3bps (and expected Libor for 2 years is 9bps), so the raise from 150bps to 200bps is the real addition. Not that it matters, as that adds 1% extra cost on just £60mn which is a small fraction (now) of the assets (and hence small expected reduction to NAV over the 2 year term).

This needs quite a lot more to reach escape velocity.

[spectoacc] 14/1/2021 11:44

153k through at 35.21, so even fairly small chunks needing to pay a decent premium.