Quarterly NAV Announcement and Trading Update

Chrysalis Investments Limited

03 August 2026

 

The information contained in this announcement is restricted and is not for publication, release or distribution in the United States of America, any member state of the European Economic Area (other than to professional investors in Belgium,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.

3 August 2026

Chrysalis Investments Limited ("Chrysalis" or the "Company")

Quarterly NAV Announcement and Trading Update

Net Asset Value

The Company announces that as at 30 June 2026 the unaudited net asset value ("NAV") per ordinary share was 131.09 pence.

The NAV calculation is based on the Company's issued share capital as at 30 June 2026 of 480,973,805 ordinary shares of no par value.

June's NAV per share represents a 2.85 pence per share (2.1%) decrease since 31 March 2026. This movement largely reflects stock specific factors, with the decrease in key peer valuations being a major driver of the diminution in Starling's carrying value.

The decrease in the fair value of the portfolio accounted for approximately 2.35 pence per share, with foreign exchange adding a further 0.19 pence per share. The share buyback led to 0.17 pence per share of accretion; fees and expenses make up the balance.

Richard Watts and Nick Williamson, Managing Partners of Chrysalis Investment Partners LLP comment:

"In a period of relatively low news flow for the portfolio, the NAV was broadly stable.

Despite seeing a resumption of growth at Starling, following the removal of certain onboarding restrictions, the carrying value fell by 5% in the period. While there was an increase of 6.5% in average peer group valuations (12.5% in UK banks), the main cause of this was the decline in valuations in the upper quartile of the total group, the key peer set for the valuation committee. Profit growth at Starling over the year-to-date has exceeded expectations and we are excited regarding the forecast trajectory of profit development over the coming years, which should become the key determinant of future valuation."

Andrew Haining, Chairman of Chrysalis Investments Limited comments:

"The slight decline in NAV per share over the period largely reflects a decrease in peer valuations for Starling, rather than the broader operational progress of our portfolio companies, together with an uncertainty discount to wefox, given the complicated decision-making process for an exit implicit in the ownership structure.

The Board remains focused on maximising value for shareholders through the realisation of the portfolio over the next three years and has now put in place the structures to self-manage the portfolio. The Board is focused on engaging with fellow shareholders in the portfolio companies to crystalise liquidity over the period and will reflect these timelines through the valuation process.

After assuming direct management control of the portfolio on 21 August 2026, and as and when liquidity opportunities emerge, the Board will be looking to return net proceeds as efficiently as possible in line with shareholder objectives.

The Board notes that this is Chrysalis Investment Partners LLP's last formal announcement as Investment Adviser before the end of the notice period on 20 August 2026. The Board would like to take this opportunity to thank the team at Chrysalis Investment Partners LLP for their support."

Portfolio Activity

Over the period, the Company made two follow-on investments.

The first, as previously disclosed, was for €7 million into wefox to extend its cash runway. The second, was a secondary purchase of shares in Smart Pension, amounting to approximately £8.5 million, alongside other co-investors.

Elsewhere, the entire Wise position was sold - approximately £2.5 million - and part of the Klarna stake was sold, worth approximately £6.6 million (representing a share price of circa $17.73). Proceeds from these realisations were used to partly fund the repayment of all the outstanding Company indebtedness; approximately £17.8 million was repaid in total, including the outstanding principal and accrued interest.

The quarter saw the termination of the Company's share buyback programme at the end of April. During that month, a further 1.9 million shares were redeemed at a cost of approximately £1.6 million, taking the total returned under the programme to £117.4 million.

Portfolio Update

Starling

During the period, Starling released its 2026 report and accounts. These highlighted a fifth year of profitability, on slightly lower revenue figures - driven by a weaker interest rate environment.

Engine - Starling's SaaS banking platform that is sold to third parties - saw 25% revenue growth, but a 68% increase in underlying accounts run off the platform. Starling invested nearly £20 million into Engine over 2026, to help drive its growth ambitions. Last year, Declan Ferguson - Starling CFO - stated that he saw a path to £100 million of committed ARR at Engine within two years; as of March 2026, Engine had secured £70 million.

The company also purchased Ember - a "Making Tax Digital" solution - which will be offered to its SME customers. As of May 2026, Starling had approximately £525 million of surplus capital, which is available for further M&A, as opportunities arise.

Following a period of regulatory restrictions, the bank has seen these being lifted in a phased manner, which has resulted in a material uptick in numbers of customers onboarded. In particular, SME onboarding has seen a major pickup in activity; given the relative economics between SME and retail accounts, a continuation of this trend should provide a strong basis for profit growth into 2027.

Smart Pension

In a period of low public news flow, Smart has continued to grow robustly.

Having exceeded £10 billion of AuM earlier in the year, the Smart Pension Master Trust has continued to grow via on-going pension contributions. Keystone, Smart's technology platform, continues to be well positioned, with a broad pipeline of opportunities.

The overall pension market remains in a state of consolidation, following the Pension Scheme Bill, which was recently passed into law.

Klarna

Klarna has performed strongly over the quarter. Q1 2026 results (published 14 May) showed GMV of $33.7 billion (up 33% year on year), revenue of $1.0 billion (up 44%) and adjusted operating profit of $68 million, with net income turning positive for the first time since the company's $15 billion New York IPO. Management reiterated full-year guidance of GMV above $155 billion; Q2 results are due on 18 August.

wefox

The business continues to benefit from the Group-wide restructuring completed over the past year. Overall, the Group is trading profitably, broadly in line with expectations.

As previously announced, the recently completed follow-on investment in wefox to increase cash runway has led to improved economics for the Company, particularly at lower valuations. The benefits of this restructuring are typically not considered by the Valuation Committee immediately but phased in over time.

Deep Instinct

While the Company has taken steps to reduce its cost base as it evaluates its strategic options, the range of potential outcomes and the resulting uncertainty over value realisation have led to a full write-down of the carrying value of this investment.

Cash Update

As of 30 June 2026, the Company had gross cash and equivalents of approximately £1.0 million, and a position in Klarna worth approximately £56.9 million, giving a total liquidity position of approximately £57.9 million.

The change in cash over the period was mainly due to debt repayment activities, which accounted for £17.8 million, as well as the buyback, which accounted for £1.6 million, and the investment activity referenced above.

To fund working capital requirements, post period end the Company realised a portion of its holding in Klarna, generating proceeds of $8.0 million, at an average price of $18.66 per share.

The Company also anticipates receiving proceeds from amounts held in escrow in connection with its former investment in Featurespace. The expected receipt is approximately £4.5 million, subject to final confirmation.

Portfolio Composition

As of 30 June 2026, the portfolio composition was as follows:

	30-Jun
Portfolio Company	Carrying Value (£ millions)	% of NAV
Starling Smart Pension Klarna wefox Brandtech Secret Escapes Featurespace Sorted Deep Instinct	356.0  136.2  56.9  36.0  27.0  12.9    4.7  0.3 -	56.5% 21.6% 9.0% 5.7% 4.3% 2.0% 0.7% 0.1% 0.0%
Gross cash and cash equivalents	1.0	0.2%
Other net assets/(liabilities)	(0.4)	(0.1)%
Net asset value	630.5	100.0%

Source: Chrysalis Investments Limited. The Company's Featurespace investment has been disposed and the amounts remaining relate to deferred disposal proceeds.

Factsheet

An updated Company factsheet will shortly be available on the Company's website:  https://www.chrysalisinvestments.co.uk.

-ENDS-

For further information, please contact: Media Montfort Communications: Charlotte McMullen / Imogen Saunders	[phone] [e-mail]
Investment Adviser Chrysalis Investment Partners LLP: James Simpson	[phone]
AIFM G10 Capital Limited: Dominic Williams	[phone]
Deutsche Numis: Nathan Brown / Matt Goss	[phone]
Panmure Liberum: Chris Clarke / Darren Vickers	[phone]
IQEQ Fund Services (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.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 which is duly authorised to undertake the role of an alternative investment fund manager ("AIFM"). G10 Capital Limited is the AIFM to the Company. Chrysalis Investment Partners LLP is the investment adviser to G10 Capital Limited. Chrysalis Investment Partners LLP (FRN: 1009684) is an Appointed Representative of G10 Capital (FRN: 648953) Limited, which is authorised and regulated by the Financial Conduct Authority.

 

END