Chrysalis Investments Limited has released its quarterly NAV announcement and trading update as of 31 March 2024. The unaudited net asset value (NAV) per ordinary share was 147.46 pence, representing a 4.09 pence per share (2.9%) increase since 31 December 2023. The movement in the fair value of the portfolio accounted for approximately 5.15 pence per share, with foreign exchange generating an adverse movement of approximately 0.87 pence per share. Fees and expenses make up the balance.
The company's NAV rose modestly over the period, driven by the positive performances of assets such as Starling, Klarna, and Smart. Klarna saw a rise in its assessed valuation multiple, while Starling saw its valuation rise due to less prominence placed on valuation metrics. The company remains cautiously optimistic about a rebound in market activity, which could lead to opportunities to realize significant liquidity for the company. Additionally, the process around the "likely disposal" announced in December 2023 continues.
Market action remains broadly favorable, but not ebullient, particularly in the UK where risk appetite, as measured by IPO activity, has been subdued. However, there are signs of life in the trade sale market, with consolidation occurring at high implied take-out multiples. The US has seen 63 IPOs so far in 2024, up nearly 7% on the same period in 2023, and Europe ex UK has seen eleven IPOs in 1Q24, versus approximately five in 1Q23.
Portfolio activity over the quarter included a modest, expected investment of approximately £6 million into Smart Pension, and the reduction of the position in Wise, yielding approximately £3 million. Starling continues to generate significant monthly profitability, with the appointment of Raman Bhatia as a new permanent CEO and the development of Engine by Starling, a Platform-as-a-Service offering.
In summary, Chrysalis Investments Limited's portfolio continues to perform robustly, with positive performances from key assets and cautious optimism about market activity and potential liquidity opportunities.