The information contained in this announcement is restricted and is not for publication, release or distribution in the United States of America, any member state of the European Economic Area (other than to professional investors in Belgium,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

25 May 2023

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

Portfolio Update

The Company notes the announcement made earlier today by Starling Bank ("Starling") that Anne Boden will step aside as Chief Executive from 30 June. Anne will remain on the board of Starling as a non-executive director. John Mountain, the current Chief Operating Officer has been appointed as interim Chief Executive. 

Anne has decided to step aside in order to separate her two roles as shareholder and Chief Executive, recognising that each requires different approaches and demands. Now that Starling has become an established and profitable UK bank, Anne believes that stepping aside as Chief Executive is in the best interests of the company.

Separately, Starling has today also published its results for the year ended 31 March 2023.

Highlights include:

·    Revenue of £453 million for the year to 31 March 2023, more than double last year's figure of £216 million.

·    Record pre-tax profits of £195 million for the year to 31 March 2023, a sixfold increase on the previous year's figure of £32 million.

·    Total lending of £4.9 billion, versus £3.2 billion previously.

·    Customer deposits have increased 17% to £10.6 billion.

As reported on 4 May 2023, Starling comprises 16% of the Company's portfolio as of 31 March 2023. 

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

"We would like to thank Anne for her tremendous efforts in growing Starling Bank to what has become the UK's leading digital bank with 3.6m customers. We have worked with Anne very closely since our initial investment in 2019 and would like to congratulate her on the extraordinary achievement in getting Starling to where it is now. 

The latest set of results published today are very strong and this is testament to the hard work and dedication shown by Anne and her team. We believe there is great strength and depth at Starling and look forward to working closely with John, David Sproul as Chair and the rest of the executive team as they continue to further grow and develop the bank."

Anne Boden comment:

"When I started Starling in 2014, I was told no one ever starts a bank, nobody wins market share and you'll never make a profit. Today's results prove them wrong. 

Now that we have grown from being an aspiring challenger to an established bank, it is clear the roles and priorities of a CEO and a large shareholder ultimately differ and require distinct approaches. As Starling continues to evolve and grow, separating my two roles is in the bank's best interests.

Handing over my responsibilities to John Mountain will enable me to focus on my position as a shareholder, championing Starling and ensuring we hold true to our values and vision of changing banking for the better."

-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.