Exclusivity
Strong pipeline of late‑stage private companies with limited competition.
Chrysalis Investment Trust: Chrysalis Investment Trust: Discounted Access to Tomorrow’s Market Leaders
Unique access to high‑growth UK private companies poised for IPO and scale
Updated: Aug 18, 2025
Investment Funds
Bull & Bear Case
An overview of the main reasons to invest and the key risks involved.
Bull Case
IPO Pipeline
Klarna IPO could crystallise material NAV‑per‑share uplift.
High‑Growth UK
Portfolio’s UK‑centric economy exposure may accelerate as domestic recovery unfolds.
Bear Case
Liquidity
Illiquid private investments may remain stuck without public exit or secondary market activity.
Discount
Wide discount may persist despite NAV growth, limiting total return.
High‑Growth Risk
Growth companies may need follow‑on capital or face execution/regulatory risks
Executive Summary
Chrysalis Investment Trust is a closed‑ended UK investment company listed on the London Stock Exchange. It invests primarily in high‑growth, late‑stage private companies across tech‑enabled sectors in the UK and Europe, combining operational due diligence with deep governance oversight.
Investment Thesis
Overview of buy and sell case of the business.
Why Invest?
Key pieces of information about the business that you need to know about.
Access to Private Companies
Chrysalis offers differentiated access to late‑stage private businesses in the UK and Europe. Its portfolio includes companies such as Smart Pension, Starling and Klarna, not typically available to public markets. That exclusivity provides upside potential as valuations reset and operational scale continues.
IPO Readiness & Realisation Potential
Several portfolio holdings, most notably Klarna, have filed for or are IPO‑ready. A successful listing would allow Chrysalis to crystallise gains and unlock liquidity. In the meantime, share buybacks and selective exits (e.g. InfoSum) reinforce readiness for public markets.
Focus on High‑Growth UK Companies
Chrysalis deliberately invests in high‑growth UK tech and fintech businesses with proven revenue and strong growth runways. Smart Pension’s rapid membership gains, Starling’s expansion and Klarna’s increasing UK traction exemplify this UK‑centric growth focus
Catalysts
The key events that could drive investment opportunities and shift markets.
Share Buybacks
Continued share buyback programs and selective realisations (e.g. InfoSum) reduce discount and improve liquidity metrics. Revaluation of holdings like Starling or Smart Pension may lift NAV as operational metrics and funding flows gain visibility.
IPOs and Strategic Exits
Potential IPO or secondary sale of Klarna unlocks latent equity value and validates valuation assumptions. Strategic divestments or exits from mature assets afford capital for reinvestment into higher‑growth names or further share repurchases.
Rerating Potential Across UK and Europe
UK/Europe tech recovery could drive multiple expansions and open buyer interest in portfolio companies already scaling revenue. Strong governance and new advisory oversight may improve valuation credibility and attract institutional investors.
Key Risks
Key pieces of information about the business risks that you need to know about.
Liquidity
Chrysalis’ core strategy centres around unquoted investments, which are inherently illiquid. Without active IPOs or secondary transactions, holdings may remain stuck at valuations that don’t reflect operational progress. Additionally, unexpected capital calls or funding needs from portfolio companies could require Chrysalis to either deploy additional capital or risk dilution.
Persisting Discount / NAV Gap
Despite NAV growth (8% uplift to 152.62p) and buybacks, the share price has consistently traded at a wide discount (40% at the end of March, narrowing to ~31%). The share price may stay depressed even as fundamentals improve, compressing total shareholder return absent a sentiment shift or restructuring.
High‑Growth Company Risks
Growth‑stage companies in the portfolio often face elevated execution, regulatory and funding uncertainty. However, 88% of the portfolio is now profitable, driven by the top-5 assets (85% of portfolio), implying substantially reduced funding risk.
Follow the Experts
Quickly navigate key insights from industry experts and leverage their knowledge and market intelligence.
Expert Insights
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“We see Chrysalis among private equity trusts where excessively wide discounts create attractive outlooks… the potential IPO of Klarna is a key driver for future performance.”
Expert Insights
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"The shareholder consultation could provide a further catalyst to narrow the discount."
Expert Insights
Expert Insights
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“Chrysalis’ top five holdings account for 69% of NAV and are all mature, and most are performing strongly.”
Investor Materials
Access the most recent investor updates published by the company.
Chrysalis
Interim Report for the period ended 31st March 2025
ArticleAnnual Report 2024
PDFInterim Investor Update
PDFExternal Insights
A curated collection of third-party content relevant to the company and sector to help inform your investment decision.
Learn More
Chrysalis shares leap 10% as Starling bank becomes the fintech Engine for growth
ArticleChrysalis (CHRY) has jumped to a three-year high after the growth capital fund underlined the strength of its recovery with a 13.7% second quarter increase driven by a dramatic 42% hike in the value of Starling bank. Shares in the £582m investment company, which invests in companies preparing to float on the stock market, leaped 10%, or 11.4p, to 123.4p on news of the double-digit rise in the portfolio’s net asset value after debts. The trading update showed NAV per share rose 20.95p to 173.57p in the three months to 30 June.
Team
Meet the experienced professionals leading our organization
Nick Williamson
Richard Watts
Mike Stewart
Rebecca Whiting
What the Pro's Are Asking
Here are the questions that professional investors are asking before making an investment decision.
How sustainable is your access to late‑stage private deals?
Investors want reassurance that Chrysalis can continue sourcing attractive growth companies. Chrysalis has a defined approach targeting niche, non‑competing tech businesses and leverages deep network relationships across UK fintech and growth capital markets.
What is the path to liquidity for key holdings like Klarna or Starling?
Chrysalis expects IPOs, secondary sales, or interest from strategic buyers as primary liquidity routes. The paused Klarna IPO is still considered ‘IPO ready’. Meanwhile, share repurchases and InfoSum disposal have funded buybacks.
How do management changes affect the strategy and execution?
Post‑Jupiter, managers Richard Watts and Nick Williamson have shifted to a dedicated advisory firm for Chrysalis, with reduced fees, expanded analyst capability, and independent valuation oversight introduced by the Board.
How is valuation credibility maintained for illiquid holdings?
Valuations are overseen quarterly via an Independent Valuation Committee, with adjustments tied to comparable peer multiples. The Board has reduced fee incentives linked solely to mark‑to‑market peaks to ensure alignment with realisation outcomes.
What happens if macro sentiment toward UK‑mid‑cap tech remains weak?
Whilst sentiment may stay subdued, Chrysalis can mitigate via disciplined exits, reinsurers of cash buffer and reinvestment into stronger growth names, aiming to preserve NAV growth and gradually reduce discount exposure.