(Sharecast News) - Chrysalis Investments shares slumped on Tuesday as it reported a drop in first-quarter net asset value, pointing to write-downs for Starling and Klarna, and said it was moving to a self-managed structure.
As at 31 March, NAV per share was 137.27p, down by 28.1p or 17% from the end of December 2025.

Chrysalis said this largely reflects the performance of global equity markets over the period, with 30 March representing the year to date low for the Nasdaq and the S&P 500. It said the operational performance of the portfolio was generally strong, particularly at Starling, Smart, and wefox.

However, it said a drop in the value of holdings Starling and Klarna accounted for 22.6p of the 28.1p decline in its NAV. Starling's carrying value on a pence per share basis fell by 12.4p, while Klarna fell by 10.2p.

Richard Watts and Nick Williamson, managing partners of Chrysalis Investment Partners, said: "The decline in NAV over the period, largely reflects the movement in comparable peer groups rather than the operational progress and performance of our portfolio companies.

"Starling's new advertising campaign commenced in April, and we believe that the early signs in terms of growth are encouraging, with new customer numbers up over 100% year-on-year since marketing spend accelerated. We were also highly encouraged to see Starling announce a fourth contract win with SBS Bank in New Zealand, further demonstrating the momentum of its software proposition.

"Despite Klarna's material derating over the period, we remain highly encouraged by the growth of Klarna and the traction of its products, particularly its fair financing product. We remain confident that Klarna has built a highly profitable business model, and we believe that we will see a marked acceleration in profitability once the growth in fair financing, and the accounting treatment of that product, moderates."

Chrysalis also announced on Tuesday that it was transitioning to a self-managed model. It said the move was 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.

At 1145 BST, the shares were down 6.6% at 81.50p.

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