Chrysalis Investments has reduced the valuation of its holding in digital bank Starling for the second consecutive quarter. The British investment trust marked down the value of its Starling stake by five per cent to £356m in the second quarter of 2026. This contributed to an overall drop of 2.35p per share in Chrysalis’ net asset value.
Starling represents over 56 per cent of Chrysalis's total portfolio value, making it the firm's largest asset. Chrysalis stated that the primary reason for the write-down was a decline in valuation multiples among high-growth fintechs and digital banks.
In addition, Chrysalis confirmed it sold a portion of its Klarna stake to raise cash and clear company debt. The firm offloaded £6.6m worth of stock during the quarter, followed by another $8m after the quarter ended. Chrysalis intends to use these proceeds to pay off its £17.8m in outstanding debt.
As of 30 June, Chrysalis held a £57m stake in Klarna. This follows a 54 per cent markdown of its Klarna holdings to £41m at the end of March, which occurred after the Swedish fintech's IPO last September.