Chrysalis posts 'solid' trading update as holdings appear 'IPO ready'

investmentweek.co.uk:

(L-R) Co-managers of Chrysalis Richard Watts and Nick Williamson

Richard Watts and Nick Williamson, portfolio managers of Chrysalis, noted «signs of life» in the initial public offering market, pointing to the floats of ARM, Instacart and Klaviyo, while adding that the trust's holding Klarna (7.1% of net asset value) was actively considering listing.

The managers said: «We consider both public and private exit routes as viable options. The portfolio contains a number of later-stage assets, either profitable or funded to profitability, that we believe will make very attractive targets in due course, with some considered ‘IPO ready'.»

Chrysalis NAV grows for second consecutive quarter

«Private equity markets have also seen signs of recovery as the interest rate and macro-economic picture becomes clearer. Deal volumes are increasing from a low point in Q1 2023, and the tech sector remains key for PE,» they added.

The trust's discount continued to widen over the period, while its NAV decreased 1.6% between 30 June and 30 September, with fair value seeing a 4p decline and FX contributing a 2p increase.

Chrysalis said the portfolio continued to make «solid progress against its financial and operating targets», noting that most of the portfolio was now profitable or funded through to profitability.

Insurance firm wefox, CHRY's largest holding (23.5% of NAV), is expected to be profitable towards the end of this year, the trust said.

Jupiter to merge two funds into Responsible Income strategy

Investment activity over the quarter was «limited», as it only invested a further £6.5m in Secret Escapes as part of a wider £31.7m fundraise.

«The company is already profitable, but it is hoped that the additional capital raised will