New investment and fair value uplift in FY20
Tern reported a 27% growth in total net assets during 2020 (from £18.9m to £24.0m), with NAV per share increasing from 7.0p to 7.3p. 2020 presented challenges due to the COVID-19 pandemic, but Tern marked the year with a new portfolio investee and a significant valuation gain. A £0.9m investment was made in Talking Medicines, which joined the portfolio in November 2020, while £1.1m was invested across three existing portfolio companies. This activity was funded by three equity raises for a total of £4.5m, with £2.1m cash held at the year end. The main valuation driver was a £2.6m uplift in the value of Tern’s investment in Wyld Networks to £4.0m. This substantial gain was partly offset by £0.6m of other adjustments, primarily driven by forex movements, resulting in a net £2.0m fair value uplift.