TIDMCHRY
RNS Number : 3120Z
Chrysalis Investments Limited
15 May 2023
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is not for publication, release or distribution in the United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 to professional investors in Belgium, Denmark, the
Republic of Ireland, Luxembourg, the Netherlands, Norway and
Sweden), Canada, Australia, Japan or the Republic of South
Africa.
15 May 2023
Chrysalis Investments Limited ("Chrysalis" or the "Company")
Follow-on Investment in Smart Pension
The Company is pleased to announce a GBP12.5 million follow-on
primary investment into Smart Pension ("Smart").
This investment forms part of a $95 million Series E funding
round led by Aquiline Capital Partners, with participation from
other existing investors including Fidelity International Strategic
Ventures, DWS, Natixis Investment Managers and Barclays.
Proceeds of the round will be deployed to continue to drive
growth in key markets, finance a pipeline of acquisitions (where
the company is already in exclusivity), and crucially provide the
capital to drive Smart towards profitability. On this note, Smart
is already profitable in the UK, via its Master Trust business, and
expects to cross this milestone in its international businesses in
the coming years.
Smart has grown strongly since Chrysalis first invested in June
2021, and has seen growth continue into this year. Smart currently
has GBP5.5 billion of Assets under Management ("AuM") on its
platform, up 17% from GBP4.7 billion at the end of 2022; it is
expected to exceed GBP10 billion by the end of 1H23. Over the
course of 2022, group revenues grew 65% to reach GBP67 million.
If, following completion, the Company's independent Valuation
Committee recommends that the Board apply the "price of recent
investment" approach to the Company's holding in Smart this would
result in a valuation consistent with the Company's current
carrying value as at 31 March 2023.
Following this investment, 84% of the Company's portfolio is
either already profitable or is funded to profitability.
Nick Williamson and Richard Watts (co-portfolio managers)
comment:
"Smart has shown tremendous growth since Chrysalis first
invested in 2021. Its innovative and market-leading pensions
technology offers its customers a highly efficient way to provide
retirement solutions to their savers.
By their nature, pension schemes in accumulation - as Smart's
typically are - bring built-in growth in "annuity" type revenues,
which we know from experience tend to be highly sought after by
financial investors. We believe Smart's platform - Keystone - is
highly efficient and should prove very profitable at scale. This
fresh capital will allow Smart to build that scale rapidly,
expanding its AuM by both organic routes, as well as through
M&A.
We believe completing a round of this size, in difficult
fundraising markets, is testament to the attractiveness of the
technology Smart has developed, and reflective of the opportunity
available in a massive market. "
Andrew Evans (Smart Group CEO & co-founder) and Will Wynne
(Smart Group MD & co-founder) comment:
"We are delighted to be closing this Series E funding round,
which we believe will unlock significant future value for Smart's
shareholders, opening up several exciting growth opportunities that
we are currently exploring.
Nick and Richard have been invaluable in helping us to prepare
for and undertake this funding round. Chrysalis has been a staunch
supporter of Smart since it first invested, and this new capital
will allow us to continue to disrupt the $62 trillion global
retirement market."
-ENDS-
For further information, please
contact:
Media +44 (0) 7976 098 139
Montfort Communications: chrysalis@montfort.london
Charlotte McMullen / Toto Reissland
/
Lesley Kezhu Wang
Jupiter Asset Management:
James Simpson +44 (0) 20 3817 1696
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:
Chris Bougourd +44 (0) 20 3530 3109
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.
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offer to invest. All investments are subject to risk. Past
performance is no guarantee of future returns. Prospective
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END
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