Tern plc (LSE:TERN) has confirmed that it has forfeited its entire limited partner interest in the Sure Valley Ventures Enterprise Capital Fund LP (SVV2) after being designated a defaulting investor under the fund’s limited partnership agreement.
The development follows Tern’s request in late 2025 for relief from its remaining funding commitments to the fund. As a result, the company has been notified that it will receive effectively no consideration for its former interest in SVV2. In addition, the fund’s general partner has indicated that it intends to pursue claims of approximately £40,000 relating to default interest and associated costs.
Tern also faces potential longer-term exposure through a deemed indemnity obligation of around £184,000, which could extend through to 2032. The company said it is seeking legal advice to better understand the scope and potential impact of these claims, noting that the outcome remains uncertain and could influence its future financial obligations. The situation highlights the risks associated with Tern’s fund-based investment approach.
From a market perspective, the company’s outlook continues to be weighed down by weak financial performance, including a sharp contraction in revenue, substantial losses and negative operating and free cash flow. While technical indicators show some positive momentum, overbought signals suggest increased downside risk. Valuation metrics also remain constrained by ongoing losses, reflected in a negative price-to-earnings ratio and the absence of dividend support.
More about Tern plc
Tern plc is an AIM-quoted investment company focused on building stakes in technology-related businesses through a combination of fund commitments and direct investments. The group targets returns from early-stage and emerging growth ventures operating across a range of technology-driven sectors.
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