Chrysalis Investments Ltd (LSE:CHRY), the London-listed investment company, saw its shares fall 7% to 81.75p after reporting a sharp drop in net asset value and announcing a transition to a self-managed structure that will end its relationship with its external investment adviser.
The company's NAV per share stood at 137.27p as at 31 March, a fall of 28.1p, or 17%, since the end of December, driven primarily by weakness in two of its largest holdings, Starling Bank and Klarna.
Starling's carrying value fell 12.4p per share after its peer group declined around 20% amid Middle East conflict and equity market turbulence, while buy-now, pay-later firm Klarna contributed a 10.2p decline after its share price dropped 56% over the period, compounded by a profit guidance downgrade for 2026.
Together, the two holdings accounted for 22.6p of the 28.1p total decline.
The company noted that global markets have since recovered materially, with the Nasdaq and S&P 500 up 16.7% and 10.7%, respectively, from their 30 March lows, and said operational performance across the portfolio, particularly at Starling, Smart and wefox, remains generally strong.
Chrysalis has also confirmed it will transition to a self-managed model following shareholder approval of an updated investment policy in March, ending its arrangement with external adviser Chrysalis Investment Partners by 20 August.
Separately, the company has served six months' notice on its alternative investment fund manager, G10 Capital, with that arrangement expiring on 1 November 2026.
The board has discontinued its share buyback programme, which returned £117 million to shareholders since September 2024, and said future capital returns will depend on cash realisations and will be subject to prior repayment of its borrowing facility.