Taaleri as an investment

Stocks
1516

Quote from Sauli’s comment: “In our assessment, Garantia wants to proceed cautiously in international credit risk operations, as the market is new to it and the company wants to prioritize risk management.”

This is indeed desirable. Foreign credit risk insurance is a different business than domestic mortgage guarantees, and it would be no surprise if some learning costs had to be paid.

There is certainly great growth potential here, and it’s good that someone shows the willingness to take risks that has been called for from Finnish companies.

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1517

Taaleri Sijoitus Oy (Taaleri) and Tesi (Finnish Industry Investment Ltd) have made an investment in Nordic Ren-Gas Oy, which develops Power-to-Gas (P2G) solutions based on renewable e-methane production to reduce emissions from heavy transport and maritime traffic. The total value of the investment round is approximately 16 million euros.

In addition to the company’s founders, Ren-Gas’s largest owners are Allianz and Ilkka Herlin’s investment company Suomen Tavara ja Raha Oy, who also participated in the company’s funding round.

Ren-Gas is a Finnish company founded in 2021, whose goal is to build a wide network of P2G gas production plants across Finland in cooperation with local energy companies. The company’s flagship project in Tampere is ready for construction, and the company’s portfolio project development pipeline has a total of over 700 MW of electrolysis capacity, which corresponds to the annual fuel demand of approximately 7,000 trucks in freight transport. Ren-Gas’s business model, which utilizes sector integration, combined with the use of the internally developed NRG SIMO optimization platform, enables exceptionally cost-effective production of hydrogen and e-methane for the European renewable e-fuel markets.

The demand for renewable fuels is growing rapidly in Europe, and Ren-Gas benefits from Finland’s affordable renewable electricity prices, strong electricity grid, sector integration, and existing gas infrastructure. The company’s projects are expected to generate significant emission reductions and are in line with the EU Taxonomy and the UN Sustainable Development Goals.

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1518

This has no bearing on the value or view of the parts, but I think it’s really important that the company finally makes progress with its strategy! Regarding balance sheet investments, the company’s operations have been very slow, and uncertainty related to the balance sheet is a key reason for the sum-of-the-parts discount.

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1519

It will be interesting to see in early January who is loading up on Taaleri at rising prices.

Iaik Oy (Matti Kaski) already rose to the 11th largest shareholder in November when he doubled his holdings (added 138,000 shares).

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1520

Taaleri Energia’s sixth renewable energy fund, Taaleri SolarWind III, has reached a size of EUR 630 million in its final fundraising round. Of the investment commitments, EUR 74 million are co-investment commitments.

The fund’s investment strategy is to acquire, develop, build, operate, and sell utility-scale onshore wind and solar farms as well as battery energy storage systems (BESS) in its target markets. The fund’s target markets include the Nordics, the Baltics, Poland, Southeast Europe, Spain, and Texas.

To date, the fund has made investments totaling approximately EUR 360 million, including:

  • 50 wind, solar, and BESS development projects (7 GW)

  • BESS, Finland (36 MWh, in operation)

  • BESS, Texas (200 MWh, under construction)

  • Wind, Serbia (154 MW, under construction)

  • Solar, Finland (129 MWp, under construction)

  • Wind, Latvia (112 MW, under construction)

  • Wind + BESS, Lithuania (45 MW + 36 MWh, under construction)

The fund is expected to be fully invested within 18–24 months.

The fund’s investors include, among others, Erste Group Bank AG, the European Bank for Reconstruction and Development (EBRD), the European Investment Fund (EIF), Ilmarinen Mutual Pension Insurance Company, KBC Verzekeringen (in cooperation with EIF), SmartCap, Varma Mutual Pension Insurance Company, VBV Pensionskasse, and other European institutional investors. Finnish pension funds, foundations, family offices, and private individuals who invested through Aktia are also strongly represented in the fund.

Taaleri SolarWind III is classified as an Article 9 fund under the EU Sustainable Finance Disclosure Regulation (SFDR). The fund receives support from the European Union through the InvestEU fund, and SmartCap’s green fund receives funding from the NextGenerationEU Recovery and Resilience Facility.

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1521

A quite respectable performance for ”any” alternative manager in the current market environment. It also hit Sauli’s €600m forecast well (total €630m), even though it fell short of the €700m target size. Will the value start to be reflected in the valuation little by little, as things move in a more positive direction on several fronts?

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1522

It’s good they got the fund together. It shows that the core is in good shape. It would be nice if they could finally get either the demerger or at least the share buybacks properly underway. I consider it cautiously positive that Garantia expanded abroad; it’s good to put their balance sheet to work. Unfortunately, the money seems to be in safer hands under Garantia’s CEO than under the control of Taaleri’s board / CEO.

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1523

Here are Kassu’s comments on the Taaleri SolarWind III fund reaching its final size of 630 million euros, exceeding expectations. :slight_smile:

Taaleri announced that its SolarWind III fund has reached its final size of EUR 630 million in its final fundraising round. The fund’s final size slightly exceeded our forecasts and supports the growth outlook for the Renewable Energy segment.

10 Likes
1524

I hold Taaleri as a sort of “core holding” from which I don’t expect any skyrocketing, but which balances out perhaps some more speculative adventures. In my opinion, this news supports this; Taaleri is able to stay roughly on the path that has been outlined for them. When you read news like this, it’s easy to keep holding.

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