Chrysalis (CHRY ) hopes to regain investor confidence by announcing it has ‘visibility over a likely disposal’ which could add 5.5p per share to the trust’s net asset value.

In a short stock exchange announcement on Tuesday afternoon the private equity company said the completion of the disposal would ‘likely take a number of months’ and is ‘subject to conditions’.

Peel Hunt analyst Thomas Pocock said given the timeframe set out there was likely to be ‘material execution risk’ associated with the deal.

However, any disposal above carrying value would help provide much-needed confidence in the company’s valuations and aid underlying returns, he said.

Liberum analyst Shonil Chande estimated the sale would nearly double the liquidity of Chrysalis, which currently has £32.8m of accessible funds immediately available, including a £11.7m position in publicly listed Wise (WISE).

Liberum calculated the company’s current asset value of £417m would get a £31.5m uplift.

‘Realisations will ultimately define the return potential and achieved values materially ahead of carrying values should read-across well to the wider portfolio with respect to valuation,’ said Chande, who has a ‘buy’ recommendation on the investment company currently trailing on a wide 48% discount.

Last month, Chrysalis’ co-manager Nick Williamson told Citywire trade sales and other ways of realising gains from its unquoted companies would be critical to reviving its performance.

Williamson, who runs the portfolio with Richard Watts, said while the IPO market is ‘an important exit route’ for Chrysalis there were a number of unquoted companies in the 16-strong portfolio that were much more likely to exit via a trade sale and a realisation that ‘would be very helpful’ ahead of a continuation vote in April.

Valuations of the portfolio were further reinforced yesterday as Bloomberg reported that Creades, one of the smaller investors in Klarna, the buy-now-pay-later credit provider that accounts for 7% of Chrysalis and is the managers’ top pick for a flotation, had increased the value of its holding by 18%, valuing the company at $7.85bn (£6.2bn). Liberum said this was ‘materially ahead’ of Chrysalis’ valuation at the end of third quarter.

The Swedish fintech company has publicly stated its intention to float and while the location and timeline for a listing have not yet been disclosed it recently set up a new legal entity in the UK.

Shares in Chrysalis rose 1% to 70.8p on Wednesday morning. They have gained 6% in the past five days after a flurry of news from the company, including an announcement the managers would leave Jupiter Asset Management to set up a new firm under which they will run the Guernsey closed-end fund. The company stated its underlying net asset value per share stood at 134.7p at 30 September.