Merian Chrysalis targets £100m in placing

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EMEA

Merian Chrysalis Investment launched a placing on Tuesday targeting at least £100m in fresh capital.

The fund said it is now around 80% invested following recent additions to its portfolio, including investments in online retirement financial platform Embark Group, fintech firm Klarna and software-as-a-service company Sorted.

Merian said the weighting of its portfolio, three-quarters of which is exposed internationally, means it is well positioned to deal with the UK’s uncertain political and macroeconomic environment.

Liberum and Zeus Capital are bookrunners on the placing.

Shares in the fund fell on Tuesday following news of the capital increase, and were trading around 127p each at 4pm, 4.5% down from Monday’s close of 133p.

The placing is expected to wrap up on September 23 at 3pm but could end earlier. In particular, the company has the right to close the placing early if commitments exceed £200m.

Pricing will be set at a premium to the prevailing NAV per share, the company said, and as per listing rules will not be more than a 10% discount to the mid-market price at the time the placing price is confirmed. Unaudited NAV was 111.16p on June 30, though at that point 49.9% of the company’s capital was held in cash or cash equivalents ahead of the Embark, Klarna and Sorted investments.

Merian last raised cash in April when it maxed out its placing programme to cash in £100m.

Its largest investments are a 20% holding in Klarna and a 13% holding in TransferWise.

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