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Highlights
- Private portfolio returns at 24.7% per annum.
- Strong gains and increased valuations across several companies.
- Forecasting continued growth into H2 FY25.
Bailador Technology Investments (ASX:BTI) has achieved impressive results in the first half of FY25, reporting a significant annual return of 24.7% from its private portfolio. Alongside this, the company has seen a notable increase in the valuation of various portfolio companies.
The technology-focused investment fund revealed that its net tangible assets (NTA) per share rose by 7.2% during H1 FY25, accounting for all fees and net dividends. Portfolio gains amounted to 11.4 cents per share after expenses, with a 3.4 cents per share dividend payout.
Based on these metrics, BTI indicates an interim dividend of 3.7 cents per share, fully franked.
Investment Success Stories
The company's co-founders, David Kirk and Paul Wilson, highlighted continued strong performance from private company investments with an internal rate of return (IRR) of 24.7% for the period. Among the successes was the increased investment in the telehealth platform Updoc, whose valuation soared by 50% to $30 million in December due to robust revenue growth.
BTI initially invested $20 million in Updoc in May 2024, following a profitable experience with InstantScripts, which was later acquired by Wesfarmers (ASX:WES), generating a 61% IRR for BTI. “We are very impressed by the founders and see a significant opportunity,” remarked Kirk and Wilson.
Additionally, the value of Mosh, a digital healthcare service focused on men's health, increased by 33% in H1 FY25. Rosterfy also saw a 14% uplift in its valuation in September, culminating in a 45% increase since BTI's initial investment in April 2023. Rosterfy focuses on volunteer and workforce management for large-scale events.
Strategic Portfolio Adjustments
In a strategic move, BTI capitalized on the rising share price of SiteMinder (ASX:SDR) by selling $20 million worth of shares, equivalent to 18% of its total position, while retaining SDR as a core holding. The company's investment in Straker, known for its automated language translation services, also appreciated by 17.5%.
New Ventures and Future Outlook
BTI expanded its investment horizon by including new companies like the fitness software platform Hapana and fintech Dash. In August 2024, BTI invested $7.7 million in Hapana and later announced a $10 million investment in Dash to boost its portfolio and services.
BTI’s portfolio at the end of H1 FY25 held 14.9% net cash, 32.2% in publicly listed companies, and the rest in private holdings. Kirk and Wilson expressed confidence in continued strong investment performance, with the overall portfolio showing 41% revenue growth and a gross margin of 66%.
