Chrysalis Investments (CHRY LN) - NAV per share up 11%, buyback should...

Chrysalis Investments’ latest quarterly NAV update showed an 11% increase in NAV per share to 156.62p, which reflected uplifts in the carrying values of Klarna, Starling Bank and wefox (amongst others), almost no write downs, and the benefit of the share buyback. Following the disposal of Featurespace in December and the drawdown of a debt facility, the Group now has a sizable gross cash position (£141m) which can continue to be deployed on share buybacks to narrow the current c. 40% discount t...

Chrysalis Investments (CHRY LN) - Realisations and share buybacks

Chrysalis Investments has announced the sale of one of its portfolio assets that is expected to bring in initial proceeds of £79m. When combined with existing cash, liquid assets and the £70m credit facility announced earlier this week, Chrysalis will have significant liquidity (c. £195m). This has allowed the company to announce a £40m share buyback, which we think should help close the c. 38% discount to the last reported NAV per share of 145.25p. In our view, the disposal of Featurespace high...

Chrysalis Investments (CHRY LN) - Quarterly NAV update

Chrysalis Investments’ latest quarterly NAV update showed a 2.9% increase in NAV per share to 147.46p, which reflected uplifts in the carrying values of Starling Bank, Smart Pension, and Klarna (amongst others) and write-downs in wefox and Tactus. The Group’s “likely disposal” is still ongoing, which could result in a sizeable injection of liquidity, taking gross cash to over £70m by our estimate. This would free up c. £20m for share buybacks according to the newly approved policy, which would h...

Chrysalis Investments – Turned a corner

Chrysalis Investments (CHRY) seems to have turned a corner. The welcome 6.5% jump in the NAV over the final quarter of 2023, encouraging news from many portfolio companies, a NAV enhancing (but unnamed) disposal in the works, and the prospects of a more supportive interest rate environment all help underscore the trust’s attractions. We expect that shareholders will be happy to support the continuation vote scheduled for the AGM in March. CHRY’s share price may be a long way off its low from la...

Chrysalis Investments – Turned a corner

On some measures, Chrysalis Investments (CHRY) seems to have turned a corner. The manager points towards the 6.5% jump in the NAV over the final quarter of 2023, encouraging news from many portfolio companies, a NAV enhancing (but unnamed) disposal in the works, and the prospects of a more supportive interest rate environment which it believes all help underscore the trust’s attractions. It also expects that shareholders will be happy to support the continuation vote scheduled for the AGM in Mar...

Audio Note: Chrysalis Investments - Initiation of coverage

In this audio note, Zeus’ Carl Smith summarises the investment case for Chrysalis Investments. Chrysalis Investments provides capital to later-stage private companies across the insurance, technology, financials, banking, media and consumer discretionary industries. Listen to the audio note below, and read the full research here.

Chrysalis Investments (CHRY LN) - Initiation of coverage

Chrysalis Investments – Putting growing pains behind it

There is no denying that the last 18 months have been a challenge for Chrysalis Investments (CHRY). However, under the hood, the majority of the portfolio assets have actually performed reasonably well given the circumstances, especially when you consider that one company, Klarna, contributed more than half of CHRY’s total NAV adjustment during FY2022. Its other private investments, which make up the majority of the portfolio, fell just 5.6% during the same period. The long-term prospects for t...

Chrysalis Investments – Putting growing pains behind it

The last 18 months have been a challenge for Chrysalis Investments (CHRY). However, under the hood, it appears that majority of the portfolio assets have actually performed reasonably well given the circumstances, especially when you consider that one company, Klarna, contributed more than half of CHRY’s total NAV adjustment during FY2022. Its other private investments, which make up the majority of the portfolio, fell by 5.6% during the same period. Despite the recent weakness, the adviser bel...

LIBERUM: Alternatives Daily: CHRY | EJFI

Chrysalis Investments - Strong Starling results re-enforce value in CHRY's portfolioEJF Investments - +1% underlying portfolio return in April before FX

LIBERUM: Alternatives Daily: CHRY | HGT | BBOX | GCP

Chrysalis Investments - Smart Pension follow-on increases portfolio funding to profitability to 84%HgCapital Trust - Trading drives 3.1% NAV upliftTritax Big Box - Trading update: Robust occupational demandGCP Infrastructure Investments - Loan refinancing adds 1.2p to NAV

LIBERUM: Best of the Week

The week's most insightful research and ideas

LIBERUM: Alternatives Daily: CHRY | GABI

Chrysalis Investments - Note: Encouraging signsGCP Asset Backed Income Fund - Quarterly update shows 1.9% NAV total return in first 3 months of 2023

LIBERUM: Morning Comment

SAS Sentiment and Screens, Commodity snapSHOT, IAG, Endeavour Mining, Hargreaves Lansdown, Trainline, SIG, Cake Box, Aptamer, Market Highlights

LIBERUM: UK Small & Mid Cap Dispatches

SAS Sentiment and Screens, Commodity snapSHOT, Trainline, SIG, Cake Box, Aptamer, SMID Market Highlights

LIBERUM: Chrysalis Investments Limited* - Encouraging signs

CHRY’s NAV per share increase of 1.7% in Q1 2023 was its first uplift since September 2021, adding to evidence of a floor in valuations. CHRY has been among the most proactive in marking down fair values, evidenced by the 87% Klarna write-down in FY22 and what we estimate to be a 51% markdown to Graphcore in Q1 2023. It is increasingly difficult to not make a relative value argument based on public market comps and in aggregate, the portfolio looks as attractive as it has for some time. The weig...

LIBERUM: Alternatives Daily

Industrials REIT - Blackstone intends to buy Industrials REIT at a 42% premium to last share priceChrysalis Investments - Graphcore pitches for role in UK’s £900m supercomputerCordiant Digital Infrastructure - Reportedly close to major Irish acquisitionUK Commercial Property Trust - Low capital and income return in industrial properties leads to underperformance vs. benchmarkGreencoat UK Wind - 42MW wind farm acquisition announcedDowning Infrastructure - 19.5% FY 22 NAV returnInsider Buying - Ma...

LIBERUM: Alternatives Daily

Fintech - Note: High growth, high returnsChrysalis Investments - Klarna's 4Q22 results show further improvementsAquila Energy Efficiency - Continuation vote fails

LIBERUM: Fintech - High growth, high returns

Fintech is a huge opportunity, happening now. Beyond the boom and bust of funding cycles, fintech is disrupting increasing swathes of financial services. Using technology to deliver superior user experiences (UX) and lower costs, fintech is solving for B2C and increasingly B2B/SME customer pain points, resulting in high growth and high returns. We have a relative preference for the payments and infrastructure (picks and shovels) sub-sectors over neo banks and innovative credit providers.

LIBERUM: Alternatives Daily: CHRY | FSFL | HGEN | CSH | CREI

Chrysalis Investments - Value accretive investment in Starling BankForesight Solar - NAV mostly flat as power price assumptions are offset by inflation increasesHydrogenOne Capital Growth - Modest Q4 NAV return increases discount to 21%Civitas Social Housing - Valuation holding up relatively wellCustodian REIT - -11% NAV TR in Q4 2022 and -8% for the calendar year