Portfolio Update

RNS Number : 4287E

Merian Chrysalis Investment Co. Ltd

04 July 2019

 

The information contained in this announcement is restricted and is not for publication, release or distribution in the United States of America, any member state of the European Economic Area (other than the United Kingdom), Canada, Australia, Japan or the Republic of South Africa.

Merian Chrysalis Investment Company Limited

4 July 2019

Merian Chrysalis Investment Company Limited (the "Company")

Portfolio Update

·      Investment in Embark Group

·      Further investment in Growth Street

·      Update on portfolio composition

Investment in Embark Group

The Company is pleased to announce an investment of £14.9 million as part of a £39.4 million funding round conducted by Embark Group Limited ("Embark Group"). A number of other institutional investors, including Blackrock, Inc. and Legg Mason, Inc. also participated in the round. The investment by the Company is subject to regulatory approval.

Embark Group is a full-scale retirement solutions provider, with platform, investment wrap, e-SIPP, SIPP, SSAS, fund research and employee benefits consulting capabilities. The Group trades under the subsidiary brands Embark, Vested, Rowanmoor, EBS, The Adviser Centre, DISCUS and Hornbuckle. It also operates a wide portfolio of white-label technology solutions for businesses such as RBS Coutts, Standard Life, Nutmeg, BestInvest, Charles Stanley, Moneyfarm and Wealthsimple.

Embark Group is one of the fastest growing digital retirement and savings businesses in the UK market, growing from zero to £15.5bn Assets under Administration in less than six years. The Group is experiencing strong demand for its digital services and additional capital will enable it to take full advantage of its disruptive position in the UK savings sector through continued technological innovation and selective expansion opportunities.

Richard Watts, portfolio manager, comments:

"The retirement and savings market is going through a period of unprecedented change, with tech-enabled providers leading the charge. Many traditional players have failed to respond to the transition and are now falling behind. Embark Group is a highly-successful and innovative digital business with strong technical expertise, it is already emerging as a pivotal player in this space and we look forward to working with the business on its next stage of development.''

Further investment in Growth Street

The Company is also announcing that it has completed a further investment of £7.5 million in Growth Street Holdings Limited ("Growth Street"). The investment, which completed on 11 June 2019, was made by way of a Convertible Loan Note ("CLA"). Subject to regulatory approval of the Company as a controlling shareholder, the CLA will convert to Preference Shares.

Following regulatory approval, the Company does not intend for a representative to join the board of Growth Street.

Richard Watts, portfolio manager, comments:

"Growth Street's highly differentiated lending product has resonated strongly with UK SMEs and the business is gaining real momentum. We are delighted to provide additional growth capital that will enable the firm to build out its credit decision system and grow its distribution network.''

Update on portfolio composition

As a result of its investment in Embark Group and Growth Street, the Company's capital is approximately 60 per cent invested following the capital raise in April 2019.

The Company continues to explore a range of further opportunities and will update the market as appropriate.

For further information, please contact: Merian Global Investors: Amelie Shepherd	[phone]
Liberum: Gillian Martin	[phone]
Maitland Administration (Guernsey) Limited: Aimee Gontier / Elaine Smeja	[phone]

LEI: 213800F9SQ753JQHSW24

A copy of this announcement will be available on the Company's website at https://www.merian.com/chrysalis/. Neither the content of the Company's website, nor the content on any website accessible from hyperlinks on its website for any other website, is incorporated into, or forms part of, this announcement nor, unless previously published by means of a recognised information service, should any such content be relied upon in reaching a decision as to whether or not to acquire, continue to hold, or dispose of, securities in the Company.

This announcement may include "forward-looking statements". All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to the Company's products and services) are forward-looking statements.

Forward-looking statements are subject to risks and uncertainties and accordingly the Company's actual future financial results and operational performance may differ materially from the results and performance expressed in, or implied by, the statements. These factors include but are not limited to those described in the formal Prospectus. These forward-looking statements speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect actual results or any change in the assumptions, conditions or circumstances on which any such statements are based unless required to do so by the Financial Services and Markets Act 2000, the Listing Rules or Prospectus Rules of the Financial Conduct Authority or other applicable laws, regulations or rules.

 

END

 

 

MSCBIGDRDGGBGCX