Chrysalis Investments returns £25m to shareholders after Klarna stake sale

Chrysalis Investments has completed the sale of its remaining stake in the Swedish payment provider Klarna for approximately £34 million. This follows an earlier sale of £6 million worth of shares in July.

As part of its managed wind-down strategy, Chrysalis announced it will return £25 million to its shareholders through a compulsory purchase of shares at 127p. The company will retain approximately £9 million from the transaction to serve as an operating capital buffer and to fund potential follow-on investments in its portfolio.

While the capital return is a key component of the company's new strategy, analysts noted a discrepancy in valuation. Chrysalis had valued the Klarna holding at £56.9 million as of June 30, but realized a total of £40 million from the full disposal.

Following the exit of Chrysalis, the company's portfolio remains heavily weighted toward Starling Bank, which accounts for nearly 60 percent of its holdings. Meanwhile, Klarna has recently adjusted its 2026 annual guidance downward, citing exchange rate effects and weak dynamics in its core European markets.