UK Edition
Woodford sells stake in Bristol tech firm Ultrahaptics for a ‘considerable profit’
Neil Woodford has sold his stake in hardware firm Ultrahaptics to private equity firm Mayfair Equity Partners.
The troubled fund manager has faced criticism for the level of his illiquid stakes in early stage firms such as Ultrahaptics, where he owned 20pc.
In June, he suspended trading in his flagship Equity Income fund due to high levels of withdrawals by investors.
Bristol-based Ultrahaptics produces panels which use ultrasound waves to create the sensation of touch, with its products being used in the automotive, advertising and gaming industries.
Mr Woodford met the firm in 2015 and led Ultrahaptics’ £10.1m Series A funding round.
Tom Carter, Ultrahaptics co-founder, said Mr Woodford encouraged the firm to raise significantly more than its initial £5m target. Mayfair led a £35m funding round in the firm last year.
It was reported Mr Woodford was in talks to sell his stake for £20m; Ultrahaptics would not confirm the price but said he exited at a profit. The firm was valued at £150m after its 2018 funding.
Christopher Olds, Ultrahaptics finance chief, said “it’s a pity” Mr Woodford was no longer an investor “but I understand the economics. It was a good deal for him and it was a good deal for the other investors”.
The secondary funding round allowed some Ultrahaptics employees to exercise their options, he added.
The Telegraph has reported that MrWoodford may plan to sell his stake in healthcare technology firm Oxford Nanopore. He has offloaded around £800m of his portfolio as he seeks to improve liquidity.
The Equity Income fund also has a significant stake in London healthcare firm BenevolentAI. Woodford Investment Management declined to comment.