Industry superannuation fund Hostplus has committed a further $100 million to IP Group Australia, the local branch of UK-based deep-tech investment firm IP Group plc (LSE: IPO).
The new backing lifts the super fund’s total commitment to the IP Group Australia-managed IP Group Hostplus Innovation Fund to $310 million.
According to IP Group Australia, the new funding will bolster investment in companies that specialise in areas including clean energy, decarbonisation of transport systems and industrial processes, healthcare and artificial intelligence and machine learning.
The fund will increase its focus on university spin-outs from IP Group’s university partners in Australia and New Zealand as well as investing in some companies from IP Group’s global portfolio.
The fund’s current investments in IP Group Australia portfolio companies include:
- Hysata (University of Wollongong) which is developing a new type of highly efficient hydrogen electrolyser to deliver low-cost green hydrogen.
- AMSL Aero (University of Sydney), developing an electrical vertical take-off and landing aircraft (eVTOL) for aeromedical, emergency services and short-range passenger routes.
- Canopus Networks (University of New South Wales), applying machine learning to understand and analyse traffic flows in telecommunications networks.
- Additive Assurance (Monash University), developing quality assurance technology for metal additive manufacturing.
IP Group Australia chief investment officer Alistair McCreadie said the new Hostplus commitment will support investment in companies that have the potential to drive environmental and social change, including clean energy, green transport, medicine, healthcare, artificial intelligence and machine learning.
Hostplus chief executive David Elia said the super fund was excited to strengthen its partnership with IP Group to make investments in both Australian and global deep-tech companies.
In 2017, IP Group committed to invest a minimum of $200 million in university technology spin-out companies in Australia and New Zealand over ten years. The venture was backed by new investors, TelstraSuper, Singapore government investment company Temasek and UK investment trusts investor M&G investments. Existing backers of IP Group, including global investment management firm Investco, UK high conviction funds manager Woodford Investment Management and UK hedge fund manager Lansdowne Partners also supported the venture.
Initial 20-year commercialisation arrangements were agreed between IP Group Australia and the University of Adelaide, Australian National University, University of Melbourne, Monash University, University of NSW, University of Queensland, University of Sydney, University of Western Australia and University of Auckland.
Image: AMSL Aero, which is developing this electric aircraft, is an investee of the IP Group Hostplus Innovation Fund.