Chrysalis Investments: H1 highlights wefox valuation error, downside priced in

Research evidence excerpt

Chrysalis Investments: H1 highlights wefox valuation error, downside priced in

Equity Research

European Investment Companies

30 June 2026

Chrysalis Investments

H1 highlights wefox valuation

error, downside priced in First Look

22% H1 NAV decline (vs. 20% reported in May) with additional CHRY.L/CHRY LN OVERWEIGHT

NEUTRAL2% due to error in previous wefox valuation process. H1 EuropeanCompaniesInvestment

decline led by Starling, wefox and Klarna and reflects weaker Price Target GBp 152

period for comps. The 44% disc offers considerable downside Price (29-Jun-26) GBp 76 Potential Upside/Downside +99.2%

Source: Bloomberg, Barclays Researchprotection with the market cap covered by Starling alone.

22% H1 NAV decline: NAV declined sharply over the period, falling 22.0% to 133.9p, driven European Investment Companies

almost entirely by valuation moves rather than underlying operational weakness. The bulk of Conor Finn, CFA

+44 (0)20 7116 6066the decline occurred in Q2, reflecting broader de-rating across growth/fintech comparables

conor.finn@barclays.com

amid heightened macro volatility. The key detractors were Klarna (-15.0p), wefox (-10.8p) and

Barclays, UK

Starling (-6.6p), which together explain ~85% of the total NAV fall. Aside from Smart Pension and

Secret Escapes, all remaining investments were marked down in H1 (Figure 1). The majority of

the reduction in valuation marks was driven by peer multiples (Klarna -63% share price over the

period; bank/fintech comps ~-20%) rather than company-specific underperformance, with

management highlighting continued strong trading across core holdings. Portfolio

concentration continues to rise, with the top three assets now 83.5% of NAV.

Revision to wefox valuation: The auditor identified an error in the external valuer’s application