Chrysalis Investments has experienced a notable six percent increase in its share price following a heightened valuation of its fintech portfolio companies, Starling Bank and Klarna.
In its latest trading update, the private equity firm announced a net asset value per ordinary share of 156.62 pence, marking a 15% increase compared to figures from September. The majority of the company’s assets have seen an upward adjustment in their carrying values.
Starling Bank, which constitutes 29% of Chrysalis’ investment portfolio, has witnessed a 10% increase, attributed to rising share prices of similar companies. This growth has been further supported by the bank’s recent launch of an instant access savings account, which has attracted substantial deposits from existing customers.
In May of the previous year, Chrysalis projected that Starling’s Software as a Service (SaaS) platform, Engine, could potentially generate hundreds of millions of pounds annually for the UK-based digital bank, pushing its valuation towards the £10 billion mark.
Klarna also experienced a valuation boost of just over 10%, prompting Chrysalis to invest an additional £8 million in the company. This fintech now represents 15% of the investment trust’s portfolio. The company remains optimistic about Klarna’s prospects, noting that a series of new and significant agreements have been secured, which could lead to a successful initial public offering (IPO) in 2025.
Additionally, Chrysalis has enjoyed a financial uplift due to its exit from the fraud detection firm Featurespace, contributing to a cash reserve of £141 million. Despite this positive trajectory, the firm has indicated that it is unlikely to pursue further investments in 2025.