Chrysalis Investments Will Propose New Capital Distribution Policy at Annual Meeting

By Christian Moess Laursen

Chrysalis Investments said it will propose to shareholders a capital allocation policy that will see it buy back 100 million pounds ($121.7 million) worth of shares, as well as a revision to its performance-fee arrangement.

The London-listed investment company–managed by Jupiter–said Friday that, under the proposed policy and if a cash reserve requirement of GBP50 million is met, it will buy back up to 15% of its share capital and, if needed, continue buying back shares until GBP100 million has been distributed.
Thereafter, it will balance its capital allocation between further shareholder returns and portfolio investments, aiming to distribute up to 25% of net cash profits on realizations.
Chrysalis also plans to propose a reduction in the overall performance-fee level potentially payable to its portfolio manager in a financial year to 12.5% from 20% previously.
The proposed policy and performance-fee revision will form the basis of a consultation with shareholders that will begin shortly, and both will be proposed at the company’s annual general meeting, to be held April 30 at the latest.
“The board looks forward to discussions with shareholders in the coming months regarding the proposed capital allocation framework and the future direction of the company,” Chairman Andrew Haining said.
Write to Christian Moess Laursen at [email protected]