AUGM’s marginally negative NAV TR (-1.2%) overshadows positive momentum from the fund’s leading investees (top 4 account for 51% of NAV). Specifically, all the investees have reported robust trading. AUGM’s management are targeting a £100m of realisations over the next two years and one investment (Iwoca, 6.6% NAV/ £17.7m) is reported to be in a sales process with a mooted valuation at a c40% premium to AUGM’s valuation. We note the Chair’s statement guiding to a strategic update in early 2026. In 2025 AUGM’s share price has declined c23% and the fund is now trading on a c49% discount to NAV. In our opinion, it feels as though investors have lost faith just as AUGM’s prospects are turning. Our view is that AUGM’s largest investees (Tide, Zopa etc) will deliver strong growth & profitability that translates into NAV appreciation and this will be supplemented by exits / exit premiums elsewhere in the portfolio. We repeat our view from October that in the current market “AUGM should trade at a 30-35% discount (20-30% upside) with prospects for further tightening over time. In our opinion, when the re-rating occurs it will be rapid and triggered by portfolio specific news flow that reestablishes NAV momentum”.
