21st Nov 2022 15:02
(Alliance News) - Chrysalis Investments Ltd on Monday said its net asset value declined in the third quarter of 2022, due to a down-round for portfolio company Klarna and a sell-off of technology shares generally.
Warrington, England-based Chrysalis is an investor in technology and fin-tech startups. A down-round means a private company sells shares for less than it did in a previous financing round.
Chrysalis' NAV was 147.79 pence at September 30, down 9.6% since June and declining 41% over the nine months to September.
The tech-heavy Nasdaq Composite index lost 30% during the first nine months of the year.
Private assets contributed to a 71.86p decline in NAV per share over the year for Chrysalis, with listed assets contributing to a 31.90p decline.
Despite "extremely difficult" funding markets, Chrysalis said portfolio companies have continued to attract "significant" investment, including from new holders.
The company said it is well-funded, with 35% of the portfolio now profitable.
Richard Watts and Nick Williamson, co-portfolio managers, said: "Our original premise when Chrysalis was launched was that, while not all investments would be outright winners, a diversified portfolio would withstand market shocks and the most successful investments would offer the potential for multiple returns on invested capital, ensuring an attractive overall return for investors. We believe this premise still has validity."
Looking ahead, Chrysalis Investments said its assets will deliver high rates of growth over the medium-term, which should translate into NAV progression and successful exits.
Chrysalis Investments shares were down 1.1% to 64.60 on Monday afternoon in London.
By Jaskeet Briah; [email protected]
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