(Alliance News) - Merian Chrysalis Investment Co Ltd on Wednesday announced a number of investments following its successful GBP175 million September placing programme.
This includes a GBP20 million follow-on investment in Starling Bank Ltd, a mobile-only digital bank. This investment was made as part of a larger GBP30 million funding round.
Richard Watts, co-portfolio manager of London-based Merian Chrysalis, said: "Starling is already proving to be a disruptive force in the banking industry...The new capital secured in this funding round will allow its management team to pursue its ambitious development programme and we're delighted that we're able to provide additional backing for this exciting business."
Merian Chrysalis has committed to use half the placing proceeds to increase exposure to existing holdings. On top of the Starling investment, the firm has acquired another GBP36.3 million worth of TransferWise Ltd shares "at a modest discount to the latest valuation" and agreed to take an additional GBP20.7 million stake in Hut Group Ltd.
The Hut Group deal is still "subject to certain consents" and is also likely to occur "at a modest discount to the latest valuation".
More details on these investments will follow "in due course". Given the follow-on Starling capital investment, Merian Chrysalis is not planning to acquire any further interests in the bank.
With all investments complete, TransferWise's weighting in the Merian Chrysalis Investment portfolio will rise to 17% from 13%, just above the target weighting of 14% to 16%. The Starling weighting will remain at 11%, just below the 12% to 14% target, while the Hut Group weighting will climb to 8% from 5%, just making the 8% to 10% target.
Shares in Merian Chrysalis Investment were down 0.4% at 117.52 pence in London on Wednesday morning.
By Anna Farley; annafarley@alliancenews.com
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