IP Group (LSE:IPO) has crystallised around £21 million from part of its Oxford Nanopore stake and led a fresh funding round for an AI materials start-up, adding to a run of cash realisations since Railpen walked away from a possible bid in July.

IP Group, the FTSE 250 investor in science and technology businesses born out of universities, has been busy on both sides of its portfolio during October. On 2 October it confirmed it had sold 10 million shares in Oxford Nanopore Technologies, the DNA sequencing group that has long been one of its best-known holdings, for gross proceeds of about £21 million. Ten days later, on 12 October, it said it had led a £4 million pre-Series A round in Matter Machine, a University of Liverpool spin-out that uses artificial intelligence and automated laboratory work to accelerate the discovery of new materials.

A partial exit from a portfolio standout

Following the Oxford Nanopore placing, IP Group still holds 70,775,255 shares, equal to about 7.23% of the company, with that retained direct stake valued at roughly £151.5 million at the prevailing market price. Funds managed by the group hold a further 11.8 million or so shares. IP Group has agreed not to sell more of its direct holding for 90 days, subject to the usual exceptions. Chief executive Greg Smith called Oxford Nanopore one of the outstanding successes in the portfolio and described the sale as an appropriate partial realisation, with the money adding to the group's financial flexibility.

The Matter Machine round was oversubscribed and also drew in Northern Gritstone, the University of Liverpool Enterprise Fund, Norrsken Evolve, LYVA Labs and the Northern Universities Venture Fund. IP Group did not say how much of the £4 million it contributed. The business is focusing on energy and sustainability applications.

Half-year results showed NAV and cash rising

The deals follow interim results on 15 September, which showed net asset value per share rising 3.2% to 113.9p at 30 June, from 110.4p at the end of 2025. Total NAV reached just over £1 billion, and the group made a profit of £31.2 million in the half. The portfolio was valued at £907.4 million, including a royalty interest linked to a Pfizer obesity treatment, which rose by £27.3 million to £152.1 million. Gross cash stood at £238.9 million, up from £211 million at the year end.

Cash from exits reached £68.7 million in the first six months, already above the total for the whole of 2025, and a further £17.1 million came in between the period end and 11 September, taking the year-to-date figure to £85.8 million. That count predates the Oxford Nanopore sale. The company is working towards a target of £250 million of realisations over 2025 to 2027. It estimated NAV per share at about 117p in early September.

Capital returns and the end of bid talks

Capital returns remain a sensitive topic. A resolution to renew the buyback authority was not passed at the June annual meeting, so no shares were repurchased in the half, and the company said it was consulting shareholders. About £50 million of realisation cash has been set aside for future returns. Since 2021 the group has returned more than £150 million and retired 17.7% of its share capital.

The backdrop also includes the end of an offer period. On 27 July, Railpen, the railway pensions investor, confirmed it would not make an offer for IP Group (LSE:IPO). The board said at the time that it was disappointed an agreed outcome had not been reached, but that it had firm conviction in its strategy and expected several potentially value-creating milestones over the following 18 months. Former 3i Group chief executive Michael Queen has since become chair.