Chrysalis Investments Limited has released its quarterly NAV announcement and trading update. As of 30 June 2024, the unaudited net asset value (NAV) per ordinary share was 145.25 pence, representing a 1.5% decrease since 31 March 2024. The movement in the fair value of the portfolio accounted for the decrease, with foreign exchange and fees also contributing. The Managing Partners commented on the decline in NAV, highlighting improvements in valuations offset by a material write-down in wefox. They also noted improved liquidity post-period end, with the sale of Graphcore to SoftBank Group Corp. The company is in a strong capital position and is reviewing the implementation of the second phase of the Capital Allocation Policy.
Chrysalis made investments and divestments during the period, including a significant investment in wefox and the sale of a portion of the Wise position. Post-period end, further investment was made into wefox, covered by the proceeds from selling the entire position in Graphcore. The Investment Adviser does not anticipate wefox requiring further investment by the Company. The portfolio in aggregate continues to perform robustly, with updates on specific holdings such as Starling, wefox, and Klarna provided.
Starling's valuation rose in the period, driven by multiple expansion of the listed peer group and the progress of Engine. The valuation of wefox fell materially, reflecting funding uncertainty, but the Company has supported wefox with additional capital. Klarna announced the sale of Klarna Checkout and reached a milestone with Klarna Plus, its first subscription service for US customers. Klarna's drive towards AI continues. The company is exploring opportunities to increase liquidity, including the option of raising debt, and the Board is reviewing how to best implement the second phase of the Capital Allocation Policy.