Australia’s largest corporate superannuation fund has placed $35 million with IP Group as part of a $200 million capital raise that will invest in spin-out companies based on the intellectual property developed by academics at a variety of universities.

The investment has been made through TelstraSuper’s Private Equity Market Portfolio by purchasing a stake in London Stock Exchange-listed IP Group.

TelstraSuper chief investment officer Graeme Miller said the fund is proud to support the opportunity to commercialise Australian innovation

“This is an exciting investment chapter for TelstraSuper. We’ll be supporting promising opportunities in the fields of healthcare, technology, cleantech and biotech based on scientific research and aiming to turn these into outstanding returns for our members,” Miller said.

“Unlike traditional Private Market investments which draw down capital over time, this investment has been immediately deployed into a well-diversified and seasoned portfolio of innovative companies through the purchase of listed shares via an institutional placement. It will also provide capital to the best and brightest at Australian universities to commercialise their world-leading research.”

Headquartered in London, IP Group invests in companies that are in the early stages of technology and innovation emanating from university research by incubating ideas and providing finance and expertise to develop that intellectual property into viable investment-grade companies.

“The business model we are using is similar to the model IP Group has used successfully in the UK and the US; providing business-building expertise, capital, networks, recruitment and business support,” IP Group chief executive Alan Aubrey said.

“We believe the model is ideally suited to the Australian and New Zealand markets and represents a significant commercial opportunity for all those involved.”

The commercialisation agreements were signed between IP Group Australia and nine universities including the University of Adelaide, Australian National University, the University of Melbourne, Monash University, UNSW Sydney, the University of Queensland, the University of Sydney and the University of Western Australia in Australia, and the University of Auckland in New Zealand.

Source: TelstraSuper commits to innovation | Financial Standard