Chrysalis Investments Investment Strategy and Performance

Chrysalis Investments is a unique investment firm that takes a holistic approach to wealth management. Chrysalis Investments' investment strategy is centered around providing long-term wealth creation for their clients.

Their investment approach is based on a thorough understanding of the client's financial goals, risk tolerance, and time horizon. This approach allows them to create a tailored investment plan that meets each client's individual needs.

One of the key aspects of Chrysalis Investments' strategy is their focus on diversification, which helps to minimize risk and maximize returns. By spreading investments across different asset classes, they can create a more stable and predictable portfolio for their clients.

Chrysalis Investments has a strong track record of performance, with a notable mention of their ability to deliver consistent returns during market downturns.

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Chrysalis Investments takes a thoughtful approach to investing, focusing on a diversified portfolio of equity and equity-related securities issued by unquoted companies.

The Company will invest primarily in equity and equity-related instruments, such as preference shares, convertible debt instruments, and equity-related and equity-linked notes and warrants.

Investments will be made in portfolio companies, as well as partnerships, limited liability partnerships, and other legal forms of entity that offer equity-like return characteristics.

This investment strategy allows Chrysalis Investments to spread risk and potentially increase returns by investing in a variety of assets.

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Chrysalis Investments has a clear investment objective: to generate long-term capital growth through investing in a portfolio of equity or equity-related investments.

The fund's management team, led by Nick Williamson and Richard Watts, has a proven track record and is committed to the fund's success. They will be solely focused on CHRY's portfolio from April 2024, following the change in investment management services.

The investment management fee is comprised of two parts: 0.5% of net asset value (NAV) per annum, and an additional AIFM fee of 0.05% on the first £1bn of NAV plus 0.03% on any net assets above that level.

The performance fee is capped at 2.75% of NAV and is subject to a high watermark of 251.96p per share. This means that the manager will only earn a performance fee if the fund's total return outperforms the 8% hurdle.

Fund management is a crucial aspect of portfolio management, and Chrysalis Investments is no exception. The fund's investment objective is to generate long-term capital growth through investing in a portfolio consisting primarily of equity or equity-related investments.

The management team of Nick Williamson and Richard Watts has been instrumental in shaping the fund's investment strategy, and they will be solely focused on CHRY's success following the change in management arrangements in April 2024.

The fund's management fee will remain unchanged at 0.5% of NAV per annum, with an additional AIFM fee of 0.05% on the first £1bn of NAV plus 0.03% on any net assets above that level.

The performance fee is capped at 2.75% of NAV, and it's subject to the same high watermark as before. This means that the manager will only earn a performance fee if the fund's performance exceeds the high watermark.

Here's a breakdown of the performance fee structure:

The new investment manager will have a 12-month minimum initial term, following which the new agreement will be terminable on six months' notice.

Portfolio activity is a key aspect of portfolio management. CHRY has continued to invest in its portfolio, with a notable drop in investments in March 2022, September 2022, and December 2022 due to the sale of Embark, THG, and Growth Street, and the sale of Revolution Beauty's stake in the portfolio.

The quarter ended 30 June 2023 saw significant investment activity, with CHRY investing £12.5m into Smart Pension as part of its $95m Series E fundraising and £2m into Tactus. The position in Wise was also trimmed as its share price continued to climb.

In the next quarter, CHRY invested £6.5m into Secret Escapes to help recapitalise it and fund its growth, which is generating meaningful levels of EBITDA. This investment is a business that CHRY might be ready to exit in about 12-18 months’ time.

Interestingly, there was no investment activity in the final quarter of 2023, which may be an indication of the increasing maturity of the portfolio.

CHRY's NAV for end December 2023 came in at 143.37p, up 6.5% on the figure as at 30 September 2023, and 10.3% higher than the end-March 2023 NAV figure.

The trend seems to be upwards, with encouraging noises about NAV-enhancing disposals, revenue and earnings growth, and potential IPOs all suggesting this will continue.

Further support comes from the likelihood of interest rate cuts to come, which eases the pressure on growth company valuations.

The overall valuation of the fund rose from about £776m to £854m over the period from 31 March 2023 to 31 December 2023.

Deep Instinct was the largest detractor, but this could change dramatically if the company succeeds in winning business from one of the large cloud service providers.

Tactus Holdings has been affected by a tougher trading environment.

Smart Pension's Series E funding round was conducted at a discount to previous valuations, likely reflecting the more difficult funding environment.

The jump in Starling's profitability that accompanied the rise in interest rates was a main driver of the fund's overall valuation increase.

The shift towards profitability at Klarna and Wefox also contributed to the fund's overall valuation increase.

The excitement around the potential IPO of Klarna underscores the potential for this portfolio as sentiment improves and the IPO market warms up.

A potential disposal of one of the assets in the portfolio is also on the horizon, which could not be through an IPO given the degree of certainty implied in the announcement.

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Chrysalis Investments has a diverse Board of Directors, with members ranging in age from 49 to 69. The Board has a total of six members.

The Chairman of the Board is Andrew Haining, who has been in the role since March 10, 2018, at the age of 66. He brings a wealth of experience to the position.

Here is a list of the Board of Directors, including their titles and ages:

The Board of Directors plays a crucial role in a company's governance and decision-making process.

Stephen Coe, a 59-year-old Director/Board Member, has been part of the Board since March 10, 2018.

The Board has a diverse age range, with some members' ages not publicly disclosed.

Anne Ewing, a 69-year-old Director/Board Member, joined the Board on May 11, 2018.

The Board's Chairman, Andrew Haining, is a 66-year-old seasoned professional who has been leading the team since March 10, 2018.

Here's a snapshot of the Board's composition:

The Board's composition has been relatively stable since March 10, 2018, with some members joining or leaving the team over time.

The Net Asset Value (NAV) is a crucial metric to understand in investing. It's essentially the total value of an investment fund's assets minus its liabilities, divided by the number of shares outstanding.

As of 30 June 2025, the latest actual NAV is $173.57. This is the same as the estimated NAV, indicating that the fund's value has been accurately calculated.

The 12-month average premium/discount is -34.4%, meaning that the fund's value has been consistently lower than its net asset value over the past year.

Here's a breakdown of the top holdings in the fund as of 31 March 2025:

It's essential to remember that the value of your investments can fluctuate, and you may get back less than you originally invested.

Management fees are a crucial aspect of investment funds. The management fee for this fund will be 0.5% of the Net Asset Value (NAV) per annum, paid monthly in arrears.

This fee is a standard practice in the industry, and it's essential to understand how it affects your investment returns. The management fee will be deducted from the fund's NAV on a monthly basis.

The performance fee, on the other hand, is a more complex calculation. It's triggered when the Adjusted NAV exceeds the higher of the Performance Hurdle and the High Water Mark, and it's paid at a rate of 20% of the excess amount.

It's worth noting that the fund's agreement can be terminated with six months' notice, which may impact the fees you'll need to pay.

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CHRY is holding a continuation vote at the AGM scheduled for 15 March 2024, as promised.

The company has been around for five years since its IPO in 2018, and shareholders will get to vote on the continuation of the company every three years after this vote.

Shareholders will get to vote on the continuation of the company every three years after the first continuation vote at the AGM.

The managers have demonstrated their ability to identify and back promising businesses, and we see no reason why shareholders should want to call time on the company.

At an EGM scheduled to follow the AGM, shareholders will be asked to approve the proposed adjustments to CHRY's performance fee, including a reduction from 20% to 12.5% outperformance and the retention of the high watermark.

At Chrysalis Investments, the investment process is designed to be straightforward and transparent. Chrysalis Investments offers a range of investment options, including a diversified portfolio and a high-yield savings account.

The investment process begins with a thorough risk assessment, which helps determine the right investment strategy for each client. Chrysalis Investments assesses a client's financial goals, risk tolerance, and time horizon to provide personalized investment recommendations.

Chrysalis Investments has a team of experienced investment professionals who work closely with clients to create customized investment plans. These plans are designed to meet the client's unique financial objectives and risk tolerance.

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Investment decisions at Chrysalis Investments are based on a thorough analysis of market trends and economic indicators. Chrysalis Investments uses a disciplined investment approach to ensure that client investments are aligned with their goals and risk tolerance.

Chrysalis Investments offers a range of investment products, including stocks, bonds, and mutual funds. These products are carefully selected to provide a diversified portfolio that meets the client's investment goals.

The investment process at Chrysalis Investments is ongoing, with regular portfolio reviews and adjustments as needed. This ensures that client investments remain aligned with their changing financial goals and risk tolerance.