Aberdeen Investments has appointed science and technology investment firm IP Group (LON:IPO) to manage a UK venture growth portfolio within the CG Scottish Widows Growth LTAF (long term asset fund).
Building fee income is a strategic priority for IP Group. And this new mandate should be a key contributor to future fee income growth. The mandate launches with new investments in areas of strategic importance to the UK. These include quantum computing, advanced battery technology and AI-enabled healthcare.
Fee prospects boosted
Aberdeen Investments manages the growth sub-fund for Scottish Widows. It has appointed IP Group to manage a UK Venture growth portfolio within the fund, helping bring private markets exposure to workplace pension savers.
IP Group’s first investments will be deployed across quantum computing, advanced battery technology and AI-enabled healthcare.
They are expected to include Oxford Quantum Circuits, which is building commercially available quantum computing systems. And Quantum Motion, which is building scalable silicon-based quantum computers designed for mass adoption.
| Year to December | H1 26 | FY26E | FY27E |
| Net asset value (£m) | 1,006 | 1,000 | 1,067 |
| NAV per share (p) | 114 | 117 | 131 |
| EPS (p) | 3.5 | 3.9 | 11.6 |
Source: Company data, Equity Development
The initial investments should also include Nyobolt, whose battery technology is advancing high-performance energy storage. And also Genomics, which is applying AI, machine learning and large-scale genetic datasets to transform drug discovery.
‘Together, these investments show how pension capital can help category-defining UK companies move from scientific leadership to commercial scale,’ said IP Group.
What did the CEO say?
IP Group CEO Greg Smith commented: ‘It’s fantastic that the fund’s first UK investments span such important areas including quantum computing, clean energy and healthcare innovation, sectors where the UK has the potential to build globally significant companies.
‘We believe this is only the beginning of a much larger opportunity to unlock growth, support economic prosperity and deliver attractive long-term returns for savers.’
This pension mandate should drive future fee growth for IP Group. The FTSE 250 firm has its own direct investment portfolio and also manages venture investments for third parties.
We like the fact IP Group is not just an investor. The company works hands-on with portfolio companies to maximise the chances and scale of success.
How to invest in technology stocks: A UK beginner’s guide 2026
Impressively, IP Group has already backed five unicorns. These are Ceres Power (LON:CWR), Oxford Nanopore (LON:ONT), Hinge Health (NYSE:HNGE), Featurespace and Nyobolt.
This summer, IP Group rejected a sweetened 71.3p bid from Railpen, acting for the Railways Pension Trustee Company. The offer was spurned on the grounds it significantly undervalued the company.
IP Group’s shares are now trading above Railpen’s bid price, yet they continue to languish on a large discount to NAV (net asset value) of 117p. In our opinion, that discount looks way too big and presents a compelling entry point for new investors.
