Quarterly NAV Announcement and Trading Update
Summary by AI BETAClose X
The information contained in this announcement is restricted and is not for publication, release or distribution in the United States of America, any member state of the European Economic Area (other than to professional investors in Belgium,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.
2 November 2026
Chrysalis Investments Limited ("Chrysalis" or the "Company")
Quarterly NAV Announcement and Trading Update
Net Asset Value
The Company announces that as at 30 September 2026 the unaudited net asset value ("NAV") per ordinary share was 133.54 pence.
The NAV calculation is based on the Company's issued share capital as at 30 September 2026 of 461,288,766 ordinary shares of no par value (30 June 2026: 480,973,805). The number of shares in issue fell during the period as a result of the Company’s first compulsory Capital Redemption which took place on 29 September 2026.
September's NAV per share represents a 2.45 pence per share (1.9%) increase since 30 June 2026 (131.09 pence), and a 3.80 pence per share (5.1%) increase compared to the adjusted NAV used for the Capital Redemption (127.0 pence).
There was an increase in the fair value of the portfolio of approximately 2.62 pence per share. Fees and expenses, offset by a small amount of NAV accretion on the Capital Redemption, make up the balance.
Andrew Haining, Chairman of Chrysalis Investments Limited comments:
“NAV per share increased modestly over the period, with an increase in the fair value of Starling offset by the sale of Klarna and a decrease in the fair value of the smaller positions in the portfolio, namely wefox, Secret Escapes and Brandtech.
Following the full exit of the Company’s position in Klarna, a first compulsory Capital Redemption was initiated, resulting in £25 million being returned to shareholders on a pro-rata basis. The Board expects that Capital Redemptions on an adjusted NAV basis will be the preferred route for capital returns going forward.
The Board is focused on maximising value from the Company's remaining portfolio through an orderly realisation strategy. Since assuming direct responsibility for the portfolio, we have been actively engaging with management teams, co-investors and other stakeholders across our investments to identify the most attractive routes to liquidity. While the timing of individual outcomes will depend on market conditions and company-specific circumstances, we continue to see opportunities to realise value.
We are particularly encouraged by the alignment we have seen among key stakeholders in our two largest investments and remain confident that there are viable pathways to liquidity within the realisation period. The Company is well capitalised and is not a forced seller of assets. This enables us to take a patient and disciplined approach to realisations, seeking to maximise value while continuing to return surplus cash to shareholders as proceeds are received.
In addition to the usual inputs from the external valuer, and the Valuation Committee, the Board commissioned an additional external valuation report for Starling this period end. The report was overseen by the financial services team at a global strategy consultancy firm who previously provided input into the Starling valuation process in September 2024. The Board considers that the additional work and the methodology adopted (which inter alia takes into consideration private market comparables) provides a valuation framework that appropriately reflects the development of the company’s business model. In determining its valuation for the period, the Board has therefore adopted the midpoint of the report’s valuation range, which also crossed over with the range produced by the external valuer.”
Portfolio Activity
During the period, the Company disposed of its remaining holding in Klarna Group plc. The remaining position was exited at an average price of approximately $14.25 per share, generating net proceeds of approximately £39.9 million. Klarna shares closed at $12.40 on 30 September 2026.
Of these proceeds, £25.0 million was allocated to the Company’s first Capital Redemption, which became effective on 29 September 2026 and was settled shortly after the period end.
The Company also received £4.9 million of deferred consideration relating to the sale of Featurespace Limited, with substantially all the proceeds due under that transaction now received.
Portfolio Update
Starling
Starling has developed from being an early stage “fintech” into a high growth, regulated UK neo-bank coupled with a banking technology platform (“Engine”). Given this, the Board first commissioned an outside consultant to report on Starling’s valuation in 2024. As Engine has developed third party revenue over that period, the Board believed it was appropriate to test the historic approach used for valuing Starling, as a fintech with a fintech peer group set and metrics.
The additional valuation report, which used private market comparables, alongside probability weighted outcomes and a sum of the parts valuation approach across the bank and Engine, produced a range which crossed over with the S&P Markit analysis and resulted in a 5-6x gross revenue multiple. On the basis that the work commissioned provides a clear and supportable valuation framework that appropriately reflects the company’s business model, the Board has adopted a valuation at the midpoint of the report’s range, slightly adjusted to consider illiquidity where public multiples were used.
With the regulatory restrictions for customer onboarding now largely lifted, the bank is investing to restart customer and deposit growth. Its SME-weighted deposit base gives it a funding cost advantage over most of the sector, and it continues to hold substantial surplus capital. A continuation of the onboarding recovery seen since the spring should underpin profit growth into 2027.
During the period, Starling continued to broaden its product range, launching “Smart Tools” within Starling Assistant, its AI-powered financial assistant, a dedicated Student Account, and a market-leading Easy Saver rate for new customers.
Engine – Starling’s SaaS banking platform that is sold to third parties – went live with Tangerine Bank, Scotiabank’s Canadian digital bank, less than a year after signing. This is Engine’s first deployment in North America and its third new international market in twelve months; the ten-year agreement covers the migration of more than two million customers.
The Company notes recent press speculation regarding the sale of shares by the company’s former CEO. While the Company cannot comment on the specifics of this private transaction, the Board and Valuation Committee have considered its nature and do not believe that it impacts the Company’s valuation.
Smart Pension
Smart continued to grow over the period. The Smart Pension Master Trust, which passed £10 billion of assets under management in June, now serves around 2 million savers and 100,000 employers, with annual contribution inflows of around £1.6 billion.
Consolidation in the workplace pension market continues following the Pension Schemes Act, and Smart remains an active consolidator, having absorbed ten other schemes to date. As the master trust scales on a largely fixed technology cost base, underlying EBITDA continues to rise. Keystone, Smart’s technology platform, continues to be well positioned with third-party providers.
Nothwithstanding Smart’s positive commercial progress, the carrying value of the Company’s investment has not increased, reflecting its ranking within the Smart capital structure.
wefox
wefox’s performance over the period continued to be driven by TAF, its Dutch term-life insurance business, which remains the leading provider in its market and operates a profitable, cash-generative managing general agent model. The group’s other operations are concentrated in Austria and Switzerland. wefox carries senior and mezzanine debt, which ranks ahead of the Company’s investment; that investment is held in convertible loans and preferred equity.
The valuation at 30 September 2026 is determined on a fair value basis less a discount reflecting the risk of a default under the group’s debt facilities. Any new investment, refinancing or disposal affecting the ranking or terms of the Company’s convertible loans requires the Company’s consent, and the Board is engaged with the group’s lenders and other shareholders on that basis to protect the value of the Company’s position.
Brandtech
Brandtech continued to build out its generative AI marketing offering during the period. In September, Pencil, the group's AI marketing platform, launched Scribble, an AI orchestration layer designed for marketers, and Jellyfish launched an AI ads optimisation capability within its Share of Model product. Shortly after the period end, Brandtech launched Brandtech Data, a global data and AI practice combining the expertise of fifty-five, DP6 and Jellyfish. The practice brings together more than 500 specialists across 22 countries and represents more than $100 million of revenue.
Brandtech also demonstrates its market leadership through its service to the United States largest advertising trade agency, the ANA, as its AI & Data Partner and the World Federation of Advertising as its AI & Technology Strategic Partner for 2026.
Pencil's chief executive, Will Hanschell, has now been appointed Group Chief Technology Officer. The group has also appointed Chris Garbutt, formerly chief creative officer of Vice Media Group and of TBWA Worldwide, as Global Chief Creative Officer.
Brandtech is a profitable group with annual gross revenues in excess of $1 billion. Its value, and therefore the timing of an exit, will be influenced by both performance across the group’s maturing global operating model, and by market valuation of the Agency Holdco and technology services within the group. As a minority shareholder, we expect to pursue any exit together with Brandtech’s other principal shareholders.
Secret Escapes
Secret Escapes entered 2026 debt free following the sale of its Central and Eastern European business, Slevomat, to Genesis Capital in December 2025. Management is now concentrated on the core continental European markets that make up 70% of group revenue, alongside the UK market.
The eruption of regional conflict affected long-haul routes, whilst weaker consumer sentiment and a prolonged European heatwave each impacted some short-haul demand behaviours and trading will be short of full-year budget. In response, management has restructured costs across marketing spend, functions and other opex lines. A range of new demand-focused initiatives are well advanced for 2027 including member activation, product development and an >8x increase in new hotel supply. The impact of all these initiatives on performance will be closely monitored during the winter bookings season.
As a minority shareholder, we expect to pursue any exit together with Secret Escapes’ other principal shareholders.
Operational Update
Further to the Company's announcement of 5 May 2026, the notice period of the Company's investment adviser, Chrysalis Investment Partners LLP (“CIP”), expired on 20 August 2026 and, with effect from 21 August 2026, the Company assumed direct responsibility for the portfolio. The Board thanks Richard Watts, Nick Williamson and the CIP team for their contribution during their tenure and cooperation in the orderly transfer of responsibilities to the Company. The AIFM’s notice period ends on 5 November 2026, from which point the Company will become self-managed.
Sam Dobbyn, a director of the Company, has taken responsibility for the portfolio and is supported by a dedicated team. This comprises Tim Brenton, who has joined from Rothschilds and has prior experience of the Chrysalis portfolio, together with Bekki Whiting and James Simpson, who have moved across from CIP and provide financial, operational and legal support. The Company also engages part-time consultants for specific portfolio matters, including Simon Holden, who stepped down from the Board in September 2026.
Following the transition, the Board expects the Company’s ongoing annual operating expenses to be below £4.0 million, compared with approximately £7.5 million in the year to 30 September 2026, conducted largely under the previous external management arrangements. This includes board and management costs, in addition to external administration, consultancy, valuation, audit and listing costs.
The Board’s Remuneration Committee is developing an appropriate performance-based incentive for the team which will be presented to investors alongside the annual report which is scheduled for publication in late December.
Cash Update
On 30 September 2026, the Company held gross cash and cash equivalents of approximately £44.0 million. This included £25.0 million allocated to the Company’s first Capital Redemption, which was paid shortly after the period end. The remaining balance of approximately £19.0 million is available to meet ongoing operating expenses through to March 2029 and any potential follow-on investments.
The movement in cash during the period principally reflected the realisations described above.
Fair Value Change (£ million)
|
Portfolio Company |
30 June 2026 Fair Value |
Additions/ (disposals)
|
Fair value movement
|
30 Sept 2026 Fair Value |
30 Sept 2026 % NAV) |
30 Sept 2026 Cost |
|
Starling |
356.0 |
- |
47.9 |
403.9 |
65.6% |
118.3 |
|
Smart Pension |
136.2 |
- |
- |
136.2 |
22.1% |
117.0 |
|
Brandtech |
27.0 |
- |
(3.0) |
24.0 |
3.9% |
46.4 |
|
wefox |
36.0 |
- |
(12.1) |
23.9 |
3.9% |
111.8 |
|
Secret Escapes |
12.9 |
- |
(3.3) |
9.6 |
1.6% |
28.0 |
|
Featurespace |
4.7 |
(4.9) |
0.4 |
0.2 |
- |
- |
|
Klarna |
56.9 |
(39.9) |
(17.0) |
- |
- |
- |
|
Sorted |
0.3 |
- |
(0.3) |
- |
- |
- |
|
Deep Instinct |
- |
- |
- |
- |
- |
68.7 |
|
Total portfolio |
629.9 |
(44.8) |
12.6 |
597.7 |
97.0% |
490.3 |
|
Cash and cash equivalents |
1.0 |
|
|
44.0 |
7.1% |
|
|
Other net assets/(liabilities) |
(0.4) |
|
|
(25.7) |
(4.2)% |
|
|
Net asset value |
630.5 |
|
|
616.0 |
100.0% |
|
Source: Chrysalis Investments Limited. The Company's Featurespace investment has been sold and the amounts remaining relate to deferred disposal proceeds. Amounts have been rounded to the nearest £0.1 million and, as a result, totals may not sum precisely due to rounding.
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
|
+44 (0) 7921 881 800 |
|
Chrysalis Investments Limited: Andrew Haining
|
Via Montfort |
|
AIFM G10 Capital Limited: Dominic Williams
|
+44 (0) 20 7397 5450 |
|
Deutsche Numis: Nathan Brown / Matt Goss
|
+44 (0) 20 7545 8000 |
|
Panmure Liberum: Chris Clarke / Darren Vickers
|
+44 (0) 20 3100 2222 |
|
IQEQ Fund Services (Guernsey) Limited: Aimee Gontier / Elaine Smeja
|
+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 which is duly authorised to undertake the role of an alternative investment fund manager ("AIFM"). G10 Capital Limited is the AIFM to the Company and is authorised and regulated by the Financial Conduct Authority.
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