Klarna IPO and Shareholder Consultation Update
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The information contained in this announcement is restricted and is not for publication, release or distribution in the United States of America, any member state of the European Economic Area (other than to professional investors in Belgium, Denmark, the Republic of Ireland, Luxembourg, the Netherlands, Norway and Sweden), Canada, Australia, Japan or the Republic of South Africa.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 which forms part of domestic law in the United Kingdom pursuant to The European Union Withdrawal Act 2018, as amended by The Market Abuse (Amendment) (EU Exit) Regulations 2019.
10 September 2025
Chrysalis Investments Limited ("Chrysalis" or the "Company")
Klarna IPO and Shareholder Consultation Update
The Company is pleased to announce an update in relation to its investment in Klarna Group plc ("Klarna").
On 2 September 2025, Klarna announced the launch of its initial public offering (the "Klarna IPO") of approximately 34.3 million ordinary shares on the New York Stock Exchange. The Klarna IPO successfully completed on 9 September 2025, at a price of USD40 per ordinary share, above the indicated range of USD35-37, valuing Klarna at approximately USD15 billion; trading is expected to commence today. As at the date of this announcement, the Company holds 4.2 million shares in Klarna.
Chrysalis first invested in Klarna in August 2019 at a valuation of USD5.5 billion. Its blended entry price across three rounds of investment is approximately USD25.6 per share (at current rates), representing a money multiple of approximately 1.6x (unrealised) at Klarna's IPO valuation. The Company's assessed market valuation of Klarna as at 30 June 2025 was approximately USD16.6 billion, valuing the Company's position at £136.9 million, which represented 15.1% of NAV.
The Company, as advised by the Investment Adviser, elected not to sell any shares at IPO. The Investment Adviser believes Klarna is well-positioned to benefit from attractive growth prospects over the medium-term. In line with other major Klarna shareholders, the Company's shareholding in Klarna is subject to a customary lock-up period of six months from IPO.
Klarna's recent trading
Klarna recently published its second quarter 2025 results which demonstrated strong growth in a number of key metrics. Gross Merchandise Volume ("GMV") increased by +19% (1Q +13%), while revenues increased by +20% (1Q +15%), both metrics on a year-on-year, like-for-like basis. Over the period, GMV growth accelerated from +15% in April to +24% by June, highlighting the growth potential of Klarna's recently announced strategic integrations, such as Stripe. The Investment Adviser expects Klarna to benefit from a number of other partnerships going live and scaling over the course of the next twelve months.
Klarna has proactively managed its cost base over the past two years and this has led to average revenue per employee increasing from $0.4m in 2Q 2023 to $1.0m in 2Q 2025; adjusted operating expenses have fallen by -24% since 1Q 2022 on a like-for-like basis. As Klarna continues to grow, the Investment Adviser expects operating leverage - aided by on-going cost efficiency, partly AI-driven, and the potential to expand gross margins - to translate into an attractive operating profit margin and profit stream.
Klarna's valuation
The recommendation not to sell any Klarna shares by the Investment Adviser was made on the grounds of both Klarna's expected future growth potential, and on near-term valuation, which it believes compares very favourably to listed peers. The Investment Adviser intends to monitor performance of Klarna in the aftermarket and will advise the Company on its holding accordingly.
Shareholder consultation update
In May 2026, the Board stated it would seek shareholder views on capital allocation in advance of a vote on the current Capital Allocation Policy ("CAP") at the AGM in 2026; this consultation is currently underway. The intention is to consult with as many shareholders as possible to determine their views to enable the Board to propose any changes to a future CAP, if deemed appropriate. The Company will provide an update in due course.
Nick Williamson and Richard Watts (Managing Partners of the Investment Adviser) comment:
"The Company's first investment in Klarna was in 2019 at a valuation of $5.5 billion, with primary capital used to support its rollout strategy in both the US and the UK. Since then, Klarna has grown materially in size - GMV has risen from $35 billion in 2019 to over $102 billion in 2024 - and the company has moved from a significant loss-making position a few years ago into profitability.
It is clear that consumers are looking for more innovative credit solutions than those offered by incumbents, and we expect this market dynamic to drive significant future growth opportunities for the industry. Combined with a number of significant relationship agreements that Klarna has signed with major players in the ecommerce and payments industries, we believe the outlook for sustained, robust top-line growth is significant.
We wish Sebastian, Niclas and the team all success as a listed company as Klarna continues its mission to be available everywhere for everything."
-ENDS-
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For further information, please contact:
Media Montfort Communications: Charlotte McMullen / Imogen Saunders
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+44 (0) 7921 881 800 chrysalis@montfort.london |
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Investment Adviser Chrysalis Investment Partners LLP: James Simpson
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+44 (0) 20 7871 5343 |
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AIFM G10 Capital Limited: Maria Baldwin
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+44 (0) 20 7397 5450 |
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Deutsche Numis: Nathan Brown / Matt Goss
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+44 (0) 20 7260 1000 |
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Panmure Liberum: Chris Clarke / Darren Vickers
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+44 (0) 20 3100 2222 |
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Barclays Bank PLC: Dion Di Miceli / Stuart Muress / James Atkinson
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+44 (0) 20 7623 2323 |
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IQEQ Fund Services (Guernsey) Limited: Aimee Gontier / Elaine Smeja
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+44 (0) 1481 231 852 |
LEI: 213800F9SQ753JQHSW24
A copy of this announcement will be available on the Company's website at https://www.chrysalisinvestments.co.uk
The information contained in this announcement regarding the Company's investments has been provided by the relevant underlying portfolio company and has not been independently verified by the Company. The information contained herein is unaudited.
This announcement is for information purposes only and is not an offer to invest. All investments are subject to risk. Past performance is no guarantee of future returns. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decision. The value of investments may fluctuate. Results achieved in the past are no guarantee of future results. 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.
The Company is an alternative investment fund ("AIF") for the purposes of the AIFM Directive and as such is required to have an investment manager who is duly authorised to undertake the role of an alternative investment fund manager ("AIFM"). The AIFM appointed is G10 Capital Limited (part of the IQEQ Group).
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