Given the experience of the team at Sterling, we have the skills in-house to value a wide range of businesses. One area we like to invest in is ‘sum-of-the-parts’opportunities – especially if we can invest at a discount before the market wakes up to the embedded value that we have identified.

Such situations can provide a good margin of safety if our assessment of hidden value is accurate. Our holding in hVIVO (previously called Open Orphan) provides a good example. Having followed one of its acquisitions, Venn Life Sciences, for a number of years, we took the decision to invest in hVIVO in May 2020.

In the past, founder Cathal Friel had shared his plans on extracting value from non-core assets via spin-offs and it is a delight when management teams actually deliver on their promises. The successful spin-out of Poolbeg Pharma represented the first step along this journey; in the coming years, we expect more value to be extracted while the core business continues to win sizeable contracts from Pharma majors.

Share your thoughts

Your email address will not be published. Required fields are marked *