Fund Managers Clash Over Fintech Firm's Future

Fund managers at Chrysalis Investment Ltd. are pushing back against a board-initiated plan to divest the fintech fund's portfolio, citing underperformance concerns. The board intends to sell off holdings and distribute cash to shareholders over the next few years. As part of this strategy, the board aims to terminate the current advisory agreement with the investment management entity, which receives an annual fee of £4.5 million.

The investment managers, Nick Williamson and Richard Watts, contend that the board's proposal for them to provide part-time consulting services for a limited five-month period is insufficient. They argue this approach lacks the necessary continuity, accountability, and sustained focus required during this critical phase.

Furthermore, the managers highlighted that this plan could lead to Chrysalis permanently losing its board representation at Starling Bank. Starling Bank constitutes more than half of Chrysalis' net asset value, and Richard Watts currently serves as a non-executive director. The managers believe losing influence at such a pivotal holding would significantly weaken oversight and hinder value realization.

Watts and Williamson established their new entity after departing Jupiter Fund Management Plc in 2023. They stated that a substantial portion of the investment team's personal wealth is invested in Chrysalis, aligning their interests directly with those of all shareholders. The company's market valuation of approximately £466 million is notably below its net asset value of £818.5 million as of December 2025.