REG - Chrysalis Invs Ltd - Portfolio Update

Chrysalis InvestmentsAnnouncement

15/05/2023 07:00

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RNS Number : 3120Z  Chrysalis Investments Limited  15 May 2023

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South Africa.

 

 

15 May 2023

 

 

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

 

Follow-on Investment in Smart Pension

 

 

 

The Company is pleased to announce a £12.5 million follow-on primary
investment into Smart Pension ("Smart").

This investment forms part of a $95 million Series E funding round led by
Aquiline Capital Partners, with participation from other existing investors
including Fidelity International Strategic Ventures, DWS, Natixis Investment
Managers and Barclays.

Proceeds of the round will be deployed to continue to drive growth in key
markets, finance a pipeline of acquisitions (where the company is already in
exclusivity), and crucially provide the capital to drive Smart towards
profitability. On this note, Smart is already profitable in the UK, via its
Master Trust business, and expects to cross this milestone in its
international businesses in the coming years.

Smart has grown strongly since Chrysalis first invested in June 2021, and has
seen growth continue into this year. Smart currently has £5.5 billion of
Assets under Management ("AuM") on its platform, up 17% from £4.7 billion at
the end of 2022; it is expected to exceed £10 billion by the end of 1H23.
Over the course of 2022, group revenues grew 65% to reach £67 million.

If, following completion, the Company's independent Valuation Committee
recommends that the Board apply the "price of recent investment" approach to
the Company's holding in Smart this would result in a valuation consistent
with the Company's current carrying value as at 31 March 2023.

Following this investment, 84% of the Company's portfolio is either already
profitable or is funded to profitability.

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

"Smart has shown tremendous growth since Chrysalis first invested in 2021. Its
innovative and market-leading pensions technology offers its customers a
highly efficient way to provide retirement solutions to their savers.

By their nature, pension schemes in accumulation - as Smart's typically are -
bring built-in growth in "annuity" type revenues, which we know from
experience tend to be highly sought after by financial investors. We believe
Smart's platform - Keystone - is highly efficient and should prove very
profitable at scale. This fresh capital will allow Smart to build that scale
rapidly, expanding its AuM by both organic routes, as well as through M&A.

We believe completing a round of this size, in difficult fundraising markets,
is testament to the attractiveness of the technology Smart has developed, and
reflective of the opportunity available in a massive market."

Andrew Evans (Smart Group CEO & co-founder) and Will Wynne (Smart Group MD
& co-founder) comment:

"We are delighted to be closing this Series E funding round, which we believe
will unlock significant future value for Smart's shareholders, opening up
several exciting growth opportunities that we are currently exploring.

Nick and Richard have been invaluable in helping us to prepare for and
undertake this funding round. Chrysalis has been a staunch supporter of Smart
since it first invested, and this new capital will allow us to continue to
disrupt the $62 trillion global retirement market."

-ENDS-

 

 

 

 

 

 For further information, please contact:

 Media

 Montfort Communications:                        +44 (0) 7976 098 139

 Charlotte McMullen / Toto Reissland /           chrysalis@montfort.london

 Lesley Kezhu Wang

 Jupiter Asset Management:                       +44 (0) 20 3817 1696

 James Simpson

 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) 20 3530 3109

 Chris Bougourd

 

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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