TIDMCHRY

RNS Number : 8827G

Chrysalis Investments Limited

29 July 2021

The information contained in this announcement is restricted and is not for publication, release or distribution in the United States of America, any member state of the European Economic Area, Canada, Australia, Japan or the Republic of South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

29 July 2021

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

Portfolio Update

The Company can today announce the sale of Embark Group Limited ("Embark") to Scottish Widows Group Limited, part of Lloyds Banking Group plc ("Lloyds") for GBP390 million. Completion of the transaction is subject to regulatory approval.

Existing shareholders of Embark, including Chrysalis, will retain the Rowanmoor SIPP and SSAS administration business of Embark ("Rowanmoor"). Rowanmoor will be operated by the existing management team as a standalone business and will continue to provide specialist services to its scheme members. Completion of the transfer of the Rowanmoor business is also subject to regulatory approval.

As per the portfolio update released by the Company on 6 July 2021, Embark currently represents approximately 5% of the Net Asset Value of the Company. The Company first invested in Embark in July 2019 and invested further follow-on capital in May 2020. The sale price represents an estimated current IRR of 63% to Chrysalis shareholders on invested capital, with the final IRR on the investment to be determined by the future performance and capital requirements of Rowanmoor.

The prevailing valuation of the investment had already factored in the potential sale. As a result, the terms of the transaction are not expected to have a material impact on the NAV per ordinary share of the Company.

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

"Embark has grown materially since our first investment, assisted by the funds we committed to complete value accretive M&A, making it one of the UK's fastest growing digital retirement and savings businesses. We congratulate the board and management team at Embark on this transaction, which represents Chrysalis' first trade sale event.

The exit IRR demonstrates strong returns for shareholders, and, following regulatory approval, the sale proceeds will be recycled to fund our exciting pipeline of investment opportunities."

-ENDS-

 
 For further information, please 
  contact: 
 
  Media:                                            +44 (0) 20 3770 7920 
  Montfort Communications                           chrysalis@montfort.london 
  Charlotte McMullen/ Toto Reissland-Burghart/ 
  Miles McKechnie 
 Jupiter Asset Management: 
  Magnus Spence                                   +44 (0) 20 3817 1325 
 Liberum: 
  Chris Clarke / Darren Vickers 
  / Owen Matthews                                 +44 (0) 20 3100 2000 
 Numis: 
  Nathan Brown/ Matt Goss                         +44 (0) 20 7260 1000 
 Maitland Administration (Guernsey) 
  Limited: 
  Elaine Smeja / Aimee Gontier                    +44 (0) 1481 749364 
 

LEI: 213800F9SQ753JQHSW24

A copy of this announcement will be available on the Company's website at

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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END

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(END) Dow Jones Newswires

July 29, 2021 02:00 ET (06:00 GMT)

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