Chrysalis Investments Limited has released its quarterly net asset value (NAV) announcement and trading update. As of 30 September 2023, the unaudited NAV per ordinary share was 134.65 pence, representing a 1.6% decrease since 30 June 2023. The movement in the fair value of the portfolio accounted for approximately 3.99 pence per share, with foreign exchange generating a favorable movement of approximately 2.01 pence per share. Fees and expenses make up the balance.
The co-portfolio managers, Richard Watts and Nick Williamson, commented that the NAV was broadly flat over the period, mirroring the performance of key equity markets. They noted that the IPO market showed signs of life, with ARM listing in the US and Instacart and Klaviyo also listing. Private equity markets have seen signs of recovery, and deal volumes are increasing. The tech sector remains key for private equity.
The investment activity during the quarter was limited. In July, the company invested £6.5 million in Secret Escapes as part of a wider £31.7 million fundraise. This capital will enable Secret Escapes to accelerate marketing spend and drive customer acquisition and growth.
The portfolio in aggregate continues to make solid progress against its financial and operating targets, particularly in the core portfolio consisting of later-stage assets. Wefox, one of the core assets, continues to grow strongly and has a clear roadmap to profitability. The company expects to be profitable by the end of 2023 and aims to post its first full year of profitability in 2024. Wefox has also made significant appointments to its leadership team, including a new Group Chief Financial Officer and Chairman.
Starling, another core asset, continues to benefit from an increase in yields on cash and debt securities. The company generates a post-tax return on equity of over 40% and offers competitive interest rates to its customers. Starling also has the potential to license its technology to financial organizations worldwide.
Overall, Chrysalis Investments Limited remains confident in the potential of its portfolio to drive NAV progression.