The information contained in this announcement is restricted and is not for publication, release or distribution in the United States of America, any member state of the European Economic Area (other than to professional investors in Belgium,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

15 May 2023

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

Follow-on Investment in Smart Pension

The Company is pleased to announce a £12.5 million follow-on primary investment into Smart Pension ("Smart").

This investment forms part of a $95 million Series E funding round led by Aquiline Capital Partners, with participation from other existing investors including Fidelity International Strategic Ventures, DWS, Natixis Investment Managers and Barclays.

Proceeds of the round will be deployed to continue to drive growth in key markets, finance a pipeline of acquisitions (where the company is already in exclusivity), and crucially provide the capital to drive Smart towards profitability. On this note, Smart is already profitable in the UK, via its Master Trust business, and expects to cross this milestone in its international businesses in the coming years.

Smart has grown strongly since Chrysalis first invested in June 2021, and has seen growth continue into this year. Smart currently has £5.5 billion of Assets under Management ("AuM") on its platform, up 17% from £4.7 billion at the end of 2022; it is expected to exceed £10 billion by the end of 1H23. Over the course of 2022, group revenues grew 65% to reach £67 million.

If, following completion, the Company's independent Valuation Committee recommends that the Board apply the "price of recent investment" approach to the Company's holding in Smart this would result in a valuation consistent with the Company's current carrying value as at 31 March 2023.

Following this investment, 84% of the Company's portfolio is either already profitable or is funded to profitability.

Nick Williamson and Richard Watts (co-portfolio managers) comment:

"Smart has shown tremendous growth since Chrysalis first invested in 2021. Its innovative and market-leading pensions technology offers its customers a highly efficient way to provide retirement solutions to their savers.

By their nature, pension schemes in accumulation - as Smart's typically are - bring built-in growth in "annuity" type revenues, which we know from experience tend to be highly sought after by financial investors. We believe Smart's platform - Keystone - is highly efficient and should prove very profitable at scale. This fresh capital will allow Smart to build that scale rapidly, expanding its AuM by both organic routes, as well as through M&A.

We believe completing a round of this size, in difficult fundraising markets, is testament to the attractiveness of the technology Smart has developed, and reflective of the opportunity available in a massive market."

Andrew Evans (Smart Group CEO & co-founder) and Will Wynne (Smart Group MD & co-founder) comment:

"We are delighted to be closing this Series E funding round, which we believe will unlock significant future value for Smart's shareholders, opening up several exciting growth opportunities that we are currently exploring.

Nick and Richard have been invaluable in helping us to prepare for and undertake this funding round. Chrysalis has been a staunch supporter of Smart since it first invested, and this new capital will allow us to continue to disrupt the $62 trillion global retirement market."

-ENDS-

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.