Tumbling share prices are weighing on certain fintech portfolio companies.
Chrysalis yesterday said its NAV had fallen by 5.6 per cent in the three months to 31 December, falling to 237.86p per share, with its own shares falling on the news yesterday by around 4.5 per cent to trade at around 174p.
Australian buy now, pay later leader Affirm saw its share price fall by 14 per cent during the quarter.
There were some bright spots of outperformance among its portfolio as well, however. Starling Bank showed “very robust” growth in deposits, the comparative valuations of its rivals performed well, and the increasing base rates give Chrysalis optimism over “likely profit upgrades” for the neobanking sector.
German insurtech Wefox also “exhibited exceptional growth during 2021”.
All in all, Chrysalis says its portfolio’s growth in certain areas has “offset any valuation compression” in others, largely those exposed to volatile stock market movements.
“Valuations of growth companies in global stock markets came under pressure over the quarter,” wrote Chrysalis.
“As investors became increasingly concerned over the outlook for inflation and the likely quantum of interest rate rises that may be deemed necessary by Central Banks to control price rises.”