Merian Chrysalis Investment Co. Ltd Portfolio Update (8257P)

TIDMMERI

RNS Number : 8257P

Merian Chrysalis Investment Co. Ltd

13 February 2019

The information contained in this announcement is restricted and is not for publication, release or distribution in the United States of America, any member state of the European Economic Area (other than the United Kingdom), Canada, Australia,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

Merian Chrysalis Investment Company Limited

13 February 2019

Merian Chrysalis Investment Company Limited (the "Company")

Portfolio Update

   --     Investment in Starling Bank 
   --     Update on portfolio composition

Investment in Starling Bank

The Company is pleased to announce an investment of approximately GBP19 million in a GBP60 million Series C funding round conducted by Starling Bank ("Starling"). The exact level of investment by the Company, and therefore the total raise, is subject to regulatory approval.

Founded by banking expert Anne Boden in 2014, Starling has built a scalable platform that delivers a range of financial services to customers. Core products include bank accounts for both retail and SME customers, which allow users to bank via a mobile app, offering digital sign-up; instant notification of transactions; insights into spending habits; and 24/7 support. Starling has also been successful in providing its technology to other financial services businesses and users via its "Banking-as-a-Service" offering, which allows customers to access its state-of-the-art payments systems and infrastructure.

Since its app launch in May 2017, Starling has seen strong take up of its products and services, and the capital provided by the Company will be used to accelerate its penetration into current markets, as well as providing funding to expand across Europe.

Starling is a fully licensed bank, authorised by the PRA and regulated by both the PRA and FCA.

Nick Williamson, co-fund manager comments:

"Financial services is a market undergoing considerable change, driven by technology and users' desire for better and more convenient offerings. The Starling team has developed a highly impressive and efficient platform, which we believe positions it well to continue to take share in core banking markets, as well as the ability to offer innovative new services in the future. We are delighted to be backing Anne and her team with this investment, and look forward to supporting them as they realise the full potential of the business."

Richard Watts, co-fund manager adds:

"We have been very impressed by Starling's growth plans and the infrastructure it has developed over the last few years. We believe there is a significant opportunity for the business to leverage its capabilities, particularly to expand in the SME market. We are excited to be supporting Starling's ambition to transform the wider banking sector."

Update on portfolio composition

Following the investment in Starling, the Company will have deployed approximately 85 per cent of the net proceeds of the initial issue.

The Company continues to explore a range of further opportunities and will update the market as appropriate.

 
 For further information, please 
  contact: Merian Global Investors: 
  Amelie Shepherd                      +44 (0) 20 7332 7500 
 Liberum: 
  Gillian Martin / Christopher 
  Britton                              +44 (0) 20 3829 5000 
 Maitland Administration (Guernsey) 
  Limited: 
  Aimee Gontier / Elaine Smeja         +44 (0) 1481 749364

LEI: 213800F9SQ753JQHSW24

A copy of this announcement will be available on the Company's website at https://www.merian.com/chrysalis/. 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.

This announcement may include "forward-looking statements". All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to the Company's products and services) are forward-looking statements.

Forward-looking statements are subject to risks and uncertainties and accordingly the Company's actual future financial results and operational performance may differ materially from the results and performance expressed in, or implied by, the statements. These factors include but are not limited to those described in the formal Prospectus. These forward-looking statements speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect actual results or any change in the assumptions, conditions or circumstances on which any such statements are based unless required to do so by the Financial Services and Markets Act 2000, the Listing Rules or Prospectus Rules of the Financial Conduct Authority or other applicable laws, regulations or rules.

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