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Chrysalis stock surges as Klarna and Starling Bank valuations boost portfolio

The private equity trust said its underlying assets rose 11 per cent to 156p per share in the last quarter of 2024, thanks to a valuation upgrade for its holding in Swedish buy now, pay later firm Klarna

Klarna app

Shares in Chrysalis Investments surged over six percent this morning following a significant revaluation of its private equity holdings, including Klarna and Starling Bank.

The private equity trust reported an 11 percent increase in the value of its underlying assets to 156p per share for the last quarter of 2024, according to its latest trading update, as reported by .

Starling Bank, accounting for 29 percent of Chrysalis' portfolio, saw a 10 percent valuation boost, mirroring share price rises in similar companies.

Klarna's valuation also climbed by just over 10 percent, with Chrysalis injecting an additional £8 million into the fintech giant, which now represents 15 percent of the trust's portfolio.

Deutsche Numis analyst Gavin Trodd has pegged Klarna's valuation at approximately $16 billion (£12.98 billion), following the revaluation, despite media speculation of a potential $20 billion (£16 billion) valuation.

"The portfolio is highly concentrated meaning it is high risk, but also has the potential for large gains, especially if Klarna successfully IPOs this year," commented Stifel analysts Will Crighton and Iain Scouller.

Chrysalis further bolstered its investments with an additional £17 million stake in Berlin-based insurtech company Wefox, whose valuation soared by 35 percent after reassessments of capital flows and the "downside scenario".

However, not all news was positive; luxury travel firm Secret Escapes, another holding within Chrysalis' portfolio, experienced a 21 percent decline in value over the same period, as noted by the Stifel analysts.