TIDMMERI
RNS Number : 5494X
Merian Chrysalis Investment Co. Ltd
01 September 2020
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is not for publication, release or distribution in the United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 Republic of Ireland), Canada, Australia, Japan or
the Republic of South Africa.
This announcement contains inside information.
1 September 2020
Merian Chrysalis Investment Company Limited (the "Company")
Quarterly NAV Announcement
Net Asset Value
The Company announces that as at 30 June 2020 the unaudited net
asset value ("NAV") per ordinary share was 137.26 pence.
The above NAV calculation is based on the Company's issued share
capital as at 30 June 2020 of 336,742,424 ordinary shares of no par
value.
June's NAV represents a 26% uplift since 31 March 2020. The
principle contributing factors to this increase were:
- Re-rating, driven by thematic positioning - There has been a
strong rebound in equity markets since the beginning of the period
and a material re-rating of technology and ecommerce assets. The
portfolio is particularly exposed to these sectors, and assets have
typically been valued with reference to relevant sets of listed
comparable companies.
- Realisations - TransferWise Ltd ("TransferWise") conducted a
secondary share sale which valued the business at US$5 billion. As
announced on 20 July 2020, the Company participated in this
transaction. TransferWise's new valuation was applied to the
Company's residual holding for the purpose of the June NAV
calculation given its proximity to the period end. This led to a
gross increase in the NAV per ordinary share of approximately
9p.
In addition, the trading performance of the portfolio through
the period was generally robust and, in some instances, there was a
marked acceleration in quarter-on-quarter growth.
In terms of individual positions, in addition to the
TransferWise transaction detailed above, the key NAV drivers, on a
unit basis, were:
- Embark Group - where the benefits of recent significant
M&A have been recognised in the valuation.
- The Hut Group Limited and Klarna Bank AB - where there has
been a significant re-rating of the set of comparative companies
used for valuation purposes.
Portfolio Activity
During the three-month period ending 30 June 2020, the Company
completed a GBP20 million investment in Featurespace Ltd and
follow-on investments in Secret Escapes Limited, Starling Bank
Limited and FinanceApp AG ("wefox").
As detailed above, the Company also had its first realisation
post period end, raising approximately GBP20 million. This
transaction served to raise capital for reinvestment, while
controlling the position size of the largest holding within the
portfolio at that time.
Portfolio Composition
As at 28 August 2020, the portfolio composition was as
follows:
Portfolio Company % of Investment Portfolio
TransferWise 15.6%
--------------------------
Starling Bank Limited 12.9%
--------------------------
Embark Group Limited 12.1%
--------------------------
Klarna Bank AB 12.0%
--------------------------
The Hut Group Limited 11.8%
--------------------------
Graphcore Limited 11.3%
--------------------------
Featurespace Limited 4.3%
--------------------------
wefox 3.7%
--------------------------
Sorted Holdings Limited 2.3%
--------------------------
Secret Escapes Limited 1.8%
--------------------------
Growth Street Holdings
Limited 0.6%
--------------------------
Gross cash and equivalents 11.5%
--------------------------
Source: Merian Global Investors. Holding sizes, as at
28/08/2020, are calculated using 30/06/2020 valuations, adjusted
for FX as at 28/08/2020 and include transactions concluded post the
NAV calculation period. Due to rounding the figures may not add up
to 100%.
The Hut Group Limited ("THG")
The Board notes the announcement by THG of the publication of
its registration document and potential intention to float. These
detail an expected fixed-price deal equating to an equity valuation
of GBP4.5bn, pre-new money.
June's NAV mark for THG reflects a significant move in the
comparative peer group used for valuation purposes, resulting in an
increase in the carrying value for this position of approximately
68%. If THG successfully completes an IPO at the proposed
valuation, this would result in a further uplift to the carrying
value of the position of approximately 17%, implying an additional
increase (over and above that already included in the 30 June NAV)
of approximately 2p per share and result in THG comprising
approximately 13% of NAV, all other things equal.
Outlook
The outlook for the Company is positive. The portfolio has
proven to be resilient against a tough market backdrop and in many
cases is benefitting from accelerated channel shift.
There are a number of later-stage opportunities within the
portfolio and the Investment Advisor hopes that they will translate
into successful realisations in the medium term. The Company's
first realisation, which occurred post period end, highlights the
global appetite for high-quality assets.
The Company currently has gross cash of approximately GBP54
million, which represents considerable liquidity. To this end, the
Investment Advisor continues to assess a range of new ideas and
follow-on opportunities, and is confident of its ability to deploy
these proceeds in a timely manner.
With a portfolio that is well positioned thematically, the
Investment Advisor is optimistic about prospects for the Company
over the remainder of the year.
Factsheet
An updated Company factsheet will shortly be available on the
Company's website: https://www.merian.com/chrysalis/
Corporate Update
The Board has now completed its due diligence following the
acquisition of the Company's Investment Adviser's parent company,
Merian Global Investors Limited, by Jupiter Fund Management plc. As
a result, the Board can confirm that there will be no change to the
investment advisory team.
-ENDS-
For further information, please
contact:
Merian Global Investors:
Amelie Shepherd +44 (0) 20 7332 7500
Liberum:
Gillian Martin / Owen Matthews +44 (0) 20 3100 2000
Maitland Administration (Guernsey)
Limited:
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/.
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
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END
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