IP Group (LON:IPO) has announced the appointment of Michael Queen, former Chief Executive of 3i Group plc, as Chair Designate, a move that could strengthen investor confidence in the company’s long term strategy and portfolio potential. According to the latest research note from Equity Development, Queen will officially succeed Sir Douglas Flint as Chair of the Board on 18 June 2026.
The appointment is viewed as highly significant given Michael Queen’s extensive background in private equity and investment management. As highlighted in the note, he previously served as Chief Executive of 3i Group plc until 2012 and currently holds several prominent positions, including Chair of Coller Capital Ltd and Pro Chancellor of the University of Surrey.
Equity Development analyst Paul Bryant believes the announcement draws attention to what the broker sees as a substantial valuation disconnect within IP Group shares. The research note stated: “If IP Group does indeed complete a significant series of exits at or above NAV over the next 18 months or so, and/or if Pfizer does receive further regulatory approvals, investors may conclude that the portfolio discount to NAV is irrational and that shares are mispriced.”
IP Group invests in businesses built around intellectual property and scientific innovation, with exposure across HealthTech, DeepTech and CleanTech. The company works closely with leading universities and research institutions, including Oxford, Cambridge, Imperial and UCL. Its portfolio has already produced four unicorn businesses and generated more than £1.1 billion in realised proceeds historically.
One of the key points raised by Equity Development is the sizeable discount between IP Group’s share price and its reported net asset value. At 31 December 2025, group NAV stood at £975 million, equivalent to 110p per share. However, the shares recently traded at 64p, implying a discount of around 47% to NAV. The broker notes that after accounting for quoted investments, cash and other assets, the market is effectively valuing the unquoted portfolio at only 42p per share, representing a 52% discount to its carrying value.
The report also points to increasing momentum in portfolio exits. IP Group generated £183 million of realisations during 2024, followed by £68 million in 2025, with management targeting a further approximately £180 million by the end of 2027.
Another potential catalyst identified by Equity Development relates to the company’s royalty income rights connected to Pfizer’s next generation obesity drugs, although these opportunities remain subject to regulatory approvals. The broker suggests that positive developments in this area could contribute additional upside to NAV over time.
IP Group Financial Highlights
- Net asset value of £975 million at 31 December 2025
- NAV per share of 110p
- Share price of 64p, representing a 47% discount to NAV
- £183 million of cash realisations achieved during 2024
- £68 million of cash proceeds generated during 2025
- Approximately £180 million of further exits targeted by end 2027
- Group profit after tax of £67 million in FY25
- Basic EPS of 7.2p in FY25
- Share buybacks totalled £46 million in FY25
The latest research note also highlights the growing maturity of IP Group’s portfolio companies. As more businesses move closer to commercialisation or exit opportunities, investors may gain greater visibility over underlying asset values and future returns.
With a highly experienced incoming Chair and several potential catalysts on the horizon, Equity Development appears to believe the market could begin reassessing IP Group’s valuation over the coming months.
Final Thoughts
IP Group’s appointment of Michael Queen adds considerable experience and credibility at a time when the company appears focused on unlocking value from its mature portfolio. Combined with ongoing exits, potential regulatory milestones and a substantial discount to NAV, the latest research note from Equity Development suggests investors may increasingly pay closer attention to the group’s underlying asset base and future opportunities.
