Chrysalis Investments Ltd (LSE:CHRY) rallied 10% on Thursday after reporting a 13.7% increase in net asset value (NAV) per share for the second quarter, thanks in large part to a step-change in the valuation of Starling Bank.
Starling, which now accounts for 42% of the Chrysalis portfolio, saw its valuation jump by 42% as the investment trust included a value for the Engine banking platform for the first time.
This latest update has spurred Panmure Liberum to lift its target price to 158p, narrowing its assumed discount to reflect improved momentum.
Chrysalis is an investment company focused on high-growth, late-stage private businesses, giving shareholders access to names like Starling, Klarna, and wefox before they reach the stock market.
With Starling delivering impressive profitability and expanding its banking-as-a-service offering, Panmure sees scope for further NAV growth ahead.
The trust’s ongoing share buyback has also contributed to accretion, while its stake in Klarna added value after a strong second quarter for fintech valuations.
All told, Chrysalis continues to offer exposure to a collection of disruptive, tech-enabled businesses at an attractive discount to net asset value - something investors are waking up to after today’s news.
The shares rose 11.6p to 123.6p.