Management Arrangements and Self-Managed Model

5 May 2026

Chrysalis Investments Limited ("Chrysalis" or the "Company")

Management Arrangements and Transition to Self-Managed Model

The Board of Chrysalis Investments Limited (the "Company") today provides an update on its ongoing management arrangements following shareholder approval of the Company's updated investment policy at the Extraordinary General Meeting held on 24 March 2026.

Transition to Self-Managed Model

Further to the announcement of 20 February 2026, the Company confirms its decision to transition to a self-managed model to execute its updated investment policy. The Company is currently working with its Investment Adviser, Chrysalis Investment Partners LLP ("CIP"), to transition key operational functions - including reporting, accounting, finance, legal, and risk management - to alternative arrangements.

This transition is scheduled to be completed by the expiry of the Investment Adviser's notice period on 20 August 2026. This move to a self-managed model is designed to ensure the Company continues to exercise robust portfolio management and oversight of its assets, specifically regarding the maintenance of governance and information rights during the execution of the new policy.

AIFM and Regulatory Services Update

The Company has also served six months' notice on G10 Capital Limited (part of the IQ-EQ group), which currently serves as the Company's Alternative Investment Fund Manager ("AIFM"). G10 Capital will continue to act in this capacity throughout the notice period, which will expire on 1 November 2026.

Following the expiry of the notice period, the Board expects that portfolio oversight, risk management, valuation oversight, regulatory compliance, and financial reporting will continue to be provided by G10 Capital on a fixed-fee, non-AIFM basis, subject to final agreement.

The proposed changes remain subject to certain regulatory filings which are not expected to impact the proposed timing.

Board Oversight and Execution

Sam Dobbyn will lead the oversight of this transition. He will act as the central point of accountability between the Board, the Investment Adviser, and the Company's broader advisory suite.

The Board will retain full oversight of strategy, investment, and disposal decisions. Sam Dobbyn, who was appointed to the board on 20 February 2026 will, alongside colleagues and external specialists, take on the oversight and governance at specific portfolio companies.

Financial Impact

The Board remains confident that this self-managed approach provides the requisite risk control, portfolio management expertise, and transparency while delivering a material reduction in the Company's ongoing cost base. Current planning assumptions indicate that the annual operating cost of the new structure remains in line with previous guidance.

Capital Allocation and Share Buyback Update

Further to the approval of the investment policy, the Board today announces the formal discontinuation of the current share buyback programme, which was initiated on 26 September 2024 and has returned £117 million to shareholders.

Under the new capital allocation policy, future capital returns will be contingent on cash realisations and will be subject to prior repayment of the Company's borrowing facility. The Board will prioritise:

1. The maintenance of a robust working capital buffer to fund the Company's internalised operating costs.

2. Strategic follow-on investments (where permitted under the investment policy) to protect or enhance value ahead of anticipated exit windows.

3. Surplus cash thereafter will be assessed for shareholder returns, with a preference for pro rata distributions to all shareholders.

Investment Strategy

The Board will retain full oversight of strategy, investment, and disposal decisions. Further updates will be provided as the transition milestones are reached.

The Board would like to thank Richard Watts, Nick Williamson, and the entire team at CIP, as well as the G10 Capital team, for their continued support during this period.

-ENDS-