REG - Chrysalis Invs Ltd - Portfolio Update

Chrysalis InvestmentsAnnouncement

29/06/2021 07:00

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RNS Number : 3998D  Chrysalis Investments Limited  29 June 2021

The information contained in this announcement is restricted and is not for
publication, release or distribution in the United States of America, any
member state of the European Economic Area, Canada, Australia, Japan or the
Republic of South Africa.

 

 

29 June 2021

 

 

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

 

Portfolio Update

 

 

The Company is pleased to announce its Investment Adviser, Jupiter Investment
Management Limited has entered into a cornerstone investment agreement with
Revolution Beauty Group plc ("Revolution Beauty") as part of its expected IPO,
and that the Company anticipates investing approximately £45 million as part
of this process. Further details are available in Revolution Beauty's
Intention to Float announcement that has been released today.

 

Chrysalis met Revolution Beauty as part of a "pilot fishing" (a pre-IPO
exploratory meeting) exercise at the request of the latter's CEO, Adam Minto,
due to the Company's ability to invest both privately and publicly. Having
analysed the investment case for Revolution Beauty and undertaken channel
checks on the brand, the Investment Adviser believes it has a significant
runway for growth.

 

Chrysalis has the ability to invest up to 20% of gross assets in companies it
has not held prior to IPO, calculated at the point of investment. While the
Company's primary goal is to secure access to exciting companies prior to
their IPOs and capture their subsequent growth in private markets, one of its
other aims is to position itself favourably at point of IPO to secure a good
allocation. Given the work undertaken by the Investment Adviser in assessing
this potential transaction, it believes it will be a very attractive
investment for shareholders.

 

The main focus of Chrysalis will remain sourcing private, late-stage
investments - typically two to five years out from IPO - but the Investment
Adviser will continue to be flexible in its approach to leveraging its
proposition to maximise value generation for shareholders.

 

Nick Williamson and Richard Watts (co-portfolio managers) comment:

 

"Over the last seven years, Adam and Tom have built an amazing company, able
to bring exciting products that customers want to market significantly faster
than its competition. With a small market share in a huge market and a
compelling customer proposition, we believe Revolution Beauty is well placed
to grow aggressively in the years ahead."

 

Adam Minto (CEO of Revolution Beauty) comments:

 

"Chrysalis has developed a compelling proposition for entrepreneurs with
late-stage businesses, providing long-term capital regardless of whether they
stay private or choose to go public. We are looking forward to a successful
IPO and will be proud to welcome Chrysalis onto our shareholder list, as part
of the wider cornerstone agreement with Jupiter".

 

About Revolution Beauty

 

Revolution Beauty was founded by Adam Minto (CEO) and Tom Allsworth (Executive
Chairman) in 2014, since when it has experienced a revenue CAGR of 99% to
December 2019, with the year to December 2020 showing minimal growth due to
COVID-19.

 

Revolution Beauty operates a "digital first" strategy, but has multiple
channels to market for its various brands, which cover a number of different
beauty categories. The company differentiates itself with its speed to market:
it looks to identify beauty trends quickly and bring them to the mass-market
within 16 weeks, making it significantly more agile and responsive than its
global competitors, which typically take 6 to 12 months. It identifies trends
via consumers, influencers and retailers, particularly via social media
platforms, such as Instagram and TikTok. It then utilises its highly efficient
and scalable supply chain to bring products to market rapidly, digesting
customer responses, before fine-tuning. Revolution Beauty is committed to
sustainability, by ensuring products ranges are 100% cruelty free, mostly
vegan, and sustainable and recyclable packaging are used wherever possible.

 

Revolution Beauty's core offering is in colour cosmetics, but it expanded into
skincare in 2018 and has relaunched its haircare range in 2021. In total, this
offers an addressable market of approximately $197 billion in 2021, growing at
a CAGR of 6% to 2025 (Source: Euromonitor).

 

Over the fourteen months to 28 February 2021, Revolution Beauty generated
revenues of £157.6 million and adjusted EBITDA of £13.1 million.

 

-ENDS-

 

 

 

 For further information, please contact:

 Media:

 Montfort Communications                                        +44 (0) 20 3770 7920

 Charlotte McMullen/ Toto Reissland-Burghart/ Miles McKechnie   chrysalis@montfort.london (mailto:chrysalis@montfort.london)

 Jupiter Asset Management:                                      +44 (0) 20 3817 1325

 Magnus Spence

 Liberum:                                                       +44 (0) 20 3100 2000

 Chris Clarke / Darren Vickers / Owen Matthews

 Numis:                                                         +44 (0) 20 7260 1000

 Nathan Brown/ Matt Goss

 Maitland Administration (Guernsey) Limited:                    +44 (0) 1481 749364

 Elaine Smeja / Aimee Gontier

 

LEI: 213800F9SQ753JQHSW24

A copy of this announcement will be available on the Company's website at

https://www.chrysalisinvestments.co.uk/
(https://www.chrysalisinvestments.co.uk/)

 

The information contained in this announcement regarding the Company's
investments has been provided by the relevant underlying portfolio company and
has not been independently verified by the Company. The information contained
herein is unaudited.

This announcement is for information purposes only and is not an offer to
invest. All investments are subject to risk. Past performance is no guarantee
of future returns. Prospective investors are advised to seek expert legal,
financial, tax and other professional advice before making any investment
decision. The value of investments may fluctuate. Results achieved in the past
are no guarantee of future results. Neither the content of the Company's
website, nor the content on any website accessible from hyperlinks on its
website for any other website, is incorporated into, or forms part of, this
announcement nor, unless previously published by means of a recognised
information service, should any such content be relied upon in reaching a
decision as to whether or not to acquire, continue to hold, or dispose of,
securities in the Company.

 

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