30th Jan 2026 12:11
(Alliance News) - Chrysalis Investments Ltd on Friday reported "immaterial" quarterly investment activity in its portfolio, although its largest investment, Starling, performed well.
The Guernsey-based, UK and Europe-focused investor's net asset value was 165.36 pence per share as of December 31, down 3.7% from 171.65p as of September 30.
Shares in Chrysalis Investments were 5.5% lower at 105.80p on Friday afternoon in London.
Chrysalis Investment Partners LLP Managing Partners Richard Watts and Nick Williamson said: "NAV per share fell in the first quarter reflecting the share price weakness of Klarna since IPO, which has accounted for approximately 4.8 pence of deterioration; an increase in the valuation of Starling largely offset a reduction in the value of wefox."
Digital bank Starling is Chrysalis' largest investment, comprising 53.3% of its NAV. Klarna is its third-biggest, at 11.1%.
"Starling hit a major milestone in the period with [its technology arm Engine by Starling] signing a ten-year contract with Tangerine Bank to re-platform its two million customers," Watts and Williamson noted. "Tangerine is a subsidiary of Scotiabank - one of the largest banks in North America with assets of approximately CAD1.4 trillion - and marks the first "migration" deal of an existing book of business for Engine."
Fintech company Klarna reported accelerating third-quarter revenue and raised its guidance during Chrysalis' first quarter ended December 31, but the share price since Klarna's IPO in September has dropped from USD40 to USD28.91 at December 31. It was down 0.6% at USD23.99 in Friday's New York pre-market.
However, Chrysalis "expects the profit profile of Klarna to substantially improve, which is backed up by market forecasts."
As for insurance platform wefox, which makes up 6.8% of NAV, Watts and Williamson commented: "Operationally, wefox continued to see underlying improvement, but was marked down in the period, reflecting the introduction of a funding uncertainty discount...We continue to work closely with the existing portfolio to assist them to maximise their valuations, ahead of future realisations."
Also, Chrysalis said net investment activity in its portfolio was "immaterial" during the first quarter.
By Emma Curzon, Alliance News reporter
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