Third-quarter letter, 2026

Dear partners,

The third quarter was quieter than the second for new investment and busier for the companies already in the portfolio. Most of our time went on follow-on rounds, one partial sale and the ordinary work of board seats.

The quarter in brief

• Fund V committed to two new companies, bringing it to eleven. We will name them when their founders announce the rounds.
• We sold part of our holding in Payfield alongside the company’s latest round. The proceeds will reach Fund III partners in the fourth quarter.
• Albedo and Juniper, both 2026 investments, each passed a milestone we set when we invested.
• Fund V called 5 per cent of commitments, taking total calls to 23 per cent. There were no calls for Funds I to IV.

Fund figures

Valuations below are as of 30 June 2026, the latest quarter-end for which marks are complete. Figures for 30 September will be in the quarterly reports we send in November.

Fund	Vintage	Size	TVPI	DPI	Net IRR
Fund I	2012	$85M	4.8x	4.6x	27%
Fund II	2015	$180M	3.9x	2.1x	24%
Fund III	2018	$320M	2.6x	0.7x	22%
Fund IV	2021	$480M	1.4x	0.1x	n/m
Fund V	2025	$650M	n/m	n/m	n/m

We begin reporting net IRR two years after a fund is fully invested, when the number says more about the companies than about the timing of capital calls. Fund IV finished investing last year, so its IRR will first appear in 2027. Fund V is too young for multiples that would mostly reflect the price of recent rounds.

Portfolio

Payfield. We first invested in Payfield at its Series B in 2020, from Fund III. The company now runs payroll for employers in 40 countries and has been profitable for six quarters. In August it raised a new round led by a growth investor, and we sold roughly a quarter of our shares at the round price.

This was a portfolio decision more than a view on the company. Payfield had grown to almost a fifth of Fund III’s net asset value, and Fund III is in its ninth year. We think the company has a long way still to run, which is why we kept three-quarters of the position. We also think partners in a fund of that age are owed some of the gain in cash. We expect the sale to add about 0.12x to Fund III’s DPI once distributed.

Albedo. We led Albedo’s Series A in March. The company measures carbon removal from orbit, so that buyers of removal credits can check what they paid for without relying on the seller’s own figures. Its first two instruments launched on a shared mission in July. Over the quarter, their readings over three forest and soil sites matched ground measurements within the error range the team had committed to before the launch. That was the milestone we cared about most. Two credit registries have since begun paid pilots.

Juniper. Juniper, a seed investment from February, screens instant payments for fraud in the fraction of a second before they settle. It went live with its first bank in July and signed a second in September. The hard part of this product is the false-positive rate, since a bank will switch off any system that blocks too many honest payments. Juniper’s rate at the first bank has stayed below the level the bank set as its condition for a full rollout.

Elsewhere, two Fund IV companies raised extensions led by existing investors, including us. One Fund III company wound down in August after a sale process failed. Our remaining cost in it was small, and the write-off was already reflected in the June marks.

Distributions

We made one distribution in the quarter, a small escrow release from an earlier Fund II sale. The Payfield proceeds will follow in November, once the transaction settles.

Fund V

Fund V now holds eleven companies. With reserves set aside for each, roughly 38 per cent of the fund is invested or committed. We expect to make between four and six further new investments over the next twelve months.

Looking ahead

Our annual meeting is in London on 19 November. Clara Novak and Amira Haddad will talk through the climate and health portfolios, and Sofia will take questions on fund accounts. Owen Brooks will send details this month, and he remains the first person to contact with any question in the meantime.