Chrysalis stock rises as private equity holdings Klarna and Starling gain value

The trust reported an 11% increase in the value of its underlying assets, reaching 156p per share in the final quarter of 2024.

Starling Bank, which accounts for 29% of Chrysalis’ portfolio, saw a 10% valuation increase, driven by gains in comparable stocks. Klarna’s valuation also rose over 10%, with Chrysalis investing an additional £8m in the fintech company, now making up 15% of the portfolio. Analysts estimate Klarna’s valuation at $16bn, though reports suggest it may target a $20bn IPO.

Chrysalis also injected £17m into Berlin-based insurtech Wefox, which experienced a 35% valuation jump following capital flow adjustments and a reassessment of downside risks. With the recent sale of its stake in fraud detection firm Feasturespace, the trust now holds £141m in cash.

A portion of this cash is being used for share buybacks, with £36m already returned to shareholders. Chrysalis has pledged not to make new investments until £100m is returned and has committed to distributing at least 25% of net realized gains from future asset sales. Analysts noted that despite the stock’s 35% discount, it retains over £60m in buyback capacity.

Chrysalis’ board has indicated that new investments are unlikely before 2026, citing the need for a further reduction in its discount before resuming capital deployment. The trust’s strategy remains focused on maximizing shareholder returns while maintaining liquidity for potential secondary investments.

Source: City AM

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