Dear , 

It has been a busy first half of the year at Parkwalk. Our proprietary access to deal-flow has enabled us to deploy £46.5m in the last 12 months. Deal-flow has been enhanced by our tie-up with IP Group plc, who recently raised a further £200m to co-invest in the university spin-out sector.

The combined group has net assets of £797m, third-party funds under management of more than £200m and a market capitalisation of c.£1bn.

We continue to see exciting prospective investment opportunities through our maturing portfolio, co-investors and our early-stage funds managed in conjunction with the tech transfer departments at the universities of Cambridge, Oxford and Bristol.

Operations

We have started beta testing a client and adviser portal that will be up and running in early 2018, in time for the new tax year. It will offer valuations and investor documentation.

Meanwhile we continue to enjoy continued support from IP Group across the investment spectrum ranging from deal-flow through due diligence and monitoring and also in the administrative area with additional personnel and systems.

Portfolio News and Performance

The portfolio continues to perform well overall, although the benign economic conditions and continued loose monetary policy continue to support most asset classes, despite Brexit and other global macroeconomic issues.

We closed investments in to a range of companies and sectors, some highlights include:

We made several smaller investments in somewhat earlier stage companies in various subsectors including geospatial positioning, quantum computing, nano-technologies, semantic machine learning, extreme data-management and hardware and sensors - more detail on these can be seen here.

Portfolio Exits

There have been no portfolio write-offs in the first half, although our AIM-listed Microsaic Systems share price has been under pressure as the company lost a key OEM customer. They are working on new markets and we remain hopeful the share price may recover as and if they make commercial progress.

We had two exits in the first half, selling some of our Xeros Technology Group at c.300p per share on investments made in 2010 (at 33p per share), 2013 (at 54p per share) and 2014 (at 123p per share).

We also exited Horizon Discovery plc, generating a 2.36x return (3.37x inclusive of initial tax reliefs) for our investors.    

We also distributed an escrow payment from a previous successful exit in the first half of this year.

We are currently working on some potential further exits, ranging from a disappointing potential 1x return through to a possible double-digit multiple return.

Further details on Parkwalk EIS funds' annual performance can be seen here.

We would like to take this opportunity to thank our investors and their advisers for investing with us and supporting the UK 'hard science' sector. The EIS makes a significant contribution towards keeping skilled jobs here in the UK and supporting innovation, skills that will be sorely needed in a post-Brexit UK.

We would also like to thank all of our colleagues at the university technology transfer offices and the over 1500 employees of our portfolio companies for their outstanding efforts.

Regards

The Parkwalk Team

This financial promotion is issued by Parkwalk Advisors Limited (Parkwalk), which is authorised and regulated by the Financial Conduct Authority. Investments referred to in this newsletter are not suitable for all investors.  Interested parties are strongly recommended to seek specialist financial and tax advice before investing in any product.  Capital is at risk and investors may not get back the full amount invested. Tax treatment depends on the individual circumstances of each investor and may be subject to change. Past performance is not a reliable indicator of future results, and the value of investments may go down as well as up. Projections and forecasts are also not a reliable indicator of future performance. Investments in small and unquoted companies carry a higher risk than many other forms of investment. Any investment in a Parkwalk product must only be made on the basis of the terms of the full Information Memorandum. Parkwalk is not able to provide advice as to the suitability of investing in any product.