Taaleri as an investment

Stocks
1590

This is a mystery to me as well—asset managers are happy to preach about efficient capital allocation, yet they leave a low-risk option for building shareholder value unused.

Even though one would hope the generation of empire-builders and their hostile takeovers were a relic of the 80s boom years, it can—much like 80s music—make a comeback as a new generation measures their egos using shareholders’ money.

An overcapitalized balance sheet and a board that has grown weary of its targets are vulnerable to those making “ambitious” strategic moves. Sauli has asked several times why Taaleri isn’t attracting interest, but fresh evidence is lacking. The fear of 80s-style maneuvers is keeping investors off the dance floor.

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1591

@Sauli_Vilen, what is your opinion on Taaleri’s recent acquisition and their intention to enter the private credit product space?

Is there a larger connection to be seen here between a private credit fund product + Garantia’s potential to build some sort of capital protection + using that to attract large amounts of idle cash/cash deposits into long-term savings, or what would be the underlying logic there?

1592

I’ll weigh in briefly on Taaleri’s investment portfolio. Truscott, Fintoil, and the Turku market square parking facility (Turun toriparkki) are all holdings to which I attribute significant value looking toward the future. There is considerable room for multiple expansion in these when a divestment situation eventually arises.

As for the company’s overall situation, as a shareholder, I wouldn’t want to see any more activist investors coming on board at this point, seeking to maximize short-term profits. I might consider the sale of Garantia for sums starting with 300 million euros. I just can’t quite figure out which insurance company a successful firm like this would suit right now; for most, Garantia is “on the wrong side of the decimal point” (too small), and from a cultural perspective, executing the deal could be a difficult equation overall.

Since there has been a focus on recurring income starting from the reporting, I believe that it will finally be comfortable to stay on board with the Energy segment.

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1593

Elliott got Juurikki to sell their Sampos. Those undervalued sales of Nordea were just so awful. It didn’t even help no matter how much Juurikki complained in the Inderes discussion forum. :unamused_face:

Fortunately, as an active investor, Juurikki is not an activist investor of the “everything-now-to-me” variety. Taaleri was and actually is an ideal case, where one part chugs along generating steady returns and the other part uses those profits to build a renewable energy fund management business that is already successful and only in the early stages of scaling.

Let’s say it straight. Garantia is the heart of Taaleri, pumping blood into Taaleri’s other operations. Sell the heart, shall we? Sell your mother first, bitte.

When Trump II came to power, the global sentiment changed, and everything that was previously good and taught as such both at home and at school was suddenly evil. And suddenly evil, malice, and dishonesty were a good thing. A “green hangover” (viherkrapula) set in.

For example, the EU’s environmental policy hasn’t changed anywhere, no matter how much Trump and Putin bluster. The EU will likely fund a quarter of the next SolarWind, just as it probably funded a decent slice of the previous one.

Therefore, before the Inderes forum votes that Garantia must be sold, could we at least wait long enough for Taaleri to benefit from all that hard work in developing expertise and growing into one of the most significant players in the field at the EU level? There are already so many proofs of this, yet those billion-scale deeds are still undone.

Rights reserved and escape from liability clause: For obvious reasons, Juurikki is a partial owner of Taaleri - over here in the corner, look, here in the corner we’re squeaking, and cornering, look, I’m waving my hand.

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Parhaat sijoitusletkautukset
1594

I don’t really see Taaleri as a very favorable target for activist investing. Even though the ownership is fragmented, building a significant position would practically be a long process and would require a rather long time horizon.

In my opinion, Elliott’s case with Sampo was also different. There, a value vacuum was created following Wahlroos’s withdrawal, the Nordea ownership dominated the entity, and there was extensive discussion regarding capital allocation. I don’t see a similar situation with Taaleri. Also, the board’s recent decisions, such as increasing loan authorizations, point more toward growth orientation than preparing the company for a divestment or breakup of its parts.

While I also believe the sum of the parts is higher than the current market capitalization, I would prefer to see that value unlocked through share buybacks rather than the sale of high-quality assets. If the stock trades at a clear discount, buying back shares is often very lucrative capital allocation.

Furthermore, I generally prefer for a euro to work inside the company with a good return rather than it being recycled to me as a dividend via the taxman. Selling Garantia could certainly release value in the short term, but at the same time, a stable source of income would disappear—one that has enabled the building of the renewable energy business.

And even though Garantia is currently being viewed through the lens of a weak housing market, I wouldn’t be surprised if, in a few years, the Finnish housing market is significantly more active than it is now. At that point, Garantia’s earnings power could also look better than it does today. Therefore, I wouldn’t personally rush to sell one of the group’s highest-quality assets right now.

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1595

Eden Asunnot is investing in a residential development to be built in Laajasalo, Helsinki. The investment is the joint venture’s second project in the centrally located Laajasalo area, which offers comprehensive services and constantly increasing amenities. The recently opened Kruunuvuorensilta bridge already provides an effortless connection to the city center for light traffic. The tram connection, which will be completed on the bridge in the near future, will make commuting even easier.

The project will consist of 68 high-quality rental apartments. Construction of the site will begin immediately and will be carried out by Pohjola Rakennus Oy.

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1597

Taaleri’s funds appear to be involved—and quite significantly—in this shady project. The risks for major losses are being highlighted.

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1598

Could we get a brief summary since the news is behind a paywall? How much of Taaleri’s own capital is committed and in what way?

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1599

It seems to have hit a paywall, here is a snippet:

" Fagernäs also has a link to the arena project. He is a founding partner and major shareholder of the asset management company Taaleri. Taaleri’s real estate development fund joined the Garden Helsinki project as a financier. In 2019, HBL reported that Taaleri was the project’s largest financier.

Projekti GH Oy, the background company for the ARENA PROJECT, is in financial difficulties. Based on its financial statements and other documents submitted to the Trade Register, it cannot survive its million-euro debts."

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1600

Based on that news from HS and HBL, it’s impossible to conclude whether Taaleri has put 0.1, 1, or 10 million, or some other amount entirely into the project.

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1601

And without reading the article, if a Taaleri fund has invested a million and Taaleri owns, say, 5% of the fund, then €50k of Taaleri’s own money is tied up.

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1602

Inside information: Taaleri and HitecVision invest 105 million euros in Fintoil to accelerate the company’s growth into a leading European biorefinery company

Taaleri is investing 30 million euros in the biorefinery company Fintoil as part of Fintoil’s funding round. The funding is being carried out in cooperation with HitecVision, a leading Norwegian private equity investor in the energy sector, which is investing 75 million euros in the company.

The investment supports Fintoil’s strategic goal of becoming a leading European biofuel company. The company aims to achieve significant annual double-digit revenue growth from 138 million euros in 2025 (a 43.4% increase from 2024) and an EBITDA margin of approximately 20 percent by 2030.

Highlights

  • Taaleri is investing a total of 30 million euros in Fintoil Holding Ky, the holding company of the Fintoil Group, as a growth capital investment via Taaleri Sijoitus Oy. The first part of the investment, approximately 25 million euros, will be completed upon the closing of the transaction, and the second part, approximately 5 million euros, will be completed in connection with industrial investments made by Fintoil.
  • Fintoil’s funding round totals 105 million euros.
  • Taaleri’s indirect ownership in Fintoil Hamina Oy is approximately 35 percent (39.6 percent on March 31, 2026). The ownership share is determined based on the final terms, including the timing of the transaction’s completion.

The investment is in line with Taaleri’s investment strategy

The investment is part of Taaleri Plc’s active capital allocation, in which the goal is to achieve an average return of over 15 percent at fair value through direct investments.

The investment constitutes a part of Fintoil’s funding round, in connection with which the co-investment company Taaleri Biojalostamo Ky is exiting its investment in Fintoil. The funding round has been carried out on market terms together with HitecVision.

Terms and financial impact of the investment

Taaleri will fund the 30 million euro investment in Fintoil with cash and existing credit facilities. Upon the completion of the investment, Taaleri will invest approximately 25 million euros. The remainder of the investment, approximately 5 million euros, will be invested in connection with the implementation of Fintoil’s planned industrial investments, estimated to occur during the first half of 2027.

Taaleri reports its Fintoil holding in the Investments segment, and the investment is treated at fair value through profit or loss as part of growth capital investments. Changes in the fair value of the investment may fluctuate significantly from one reporting period to another, which may have an impact on Taaleri’s earnings.

Taaleri estimates that the investment will not have a material impact on the company’s short-term financial outlook. In connection with the completion of the corporate arrangement and the exit from Taaleri Biojalostamo Ky, the Taaleri Group will record an estimated total of 2.5 million euros in management and performance fees. The final amount will be confirmed upon the completion of the investment.

The investment is expected to be completed by the end of September 2026. The completion is subject to the fulfillment of customary conditions and required approvals.

Fintoil in brief

Fintoil is a biorefinery based in Hamina that specializes in refining crude tall oil (CTO). The company’s products are used as substitutes for fossil raw materials in applications such as biofuels and biochemicals. The Hamina biorefinery began operations in September 2022. During the 12-month period ending at the end of March 2026, Fintoil continued its strong growth in both existing and new market segments, achieving a revenue of 149 million euros and an EBITDA of 9 million euros.

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1603

Quite a significant investment in Fintoil together with HitecVision. This is starting to be in the right size class, unlike the Garden Helsinki project discussed here.

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1604

Taaleri and HitecVision Accelerate Fintoil’s Growth by Capitalizing on the Rapidly Growing Demand for Advanced Biofuels

Fintoil is launching its next phase of growth with the goal of developing the company into a leading European biorefinery business. To support the implementation of this strategy, the Norwegian energy private equity investor HitecVision and current majority owner Taaleri are investing 105 million euros into Fintoil’s group structure.

Fintoil’s competitiveness is based on its modern biorefinery in Hamina, which is one of the world’s most advanced facilities for refining crude tall oil (CTO). Fintoil provides high-quality and sustainable products for the global biofuel and biochemical industries and is continuously developing new products to meet the needs of its customers.

The arrangement strengthens Fintoil’s balance sheet, supports the ongoing scaling of production in Hamina, and enables the assessment of further growth opportunities and organic growth through industrial investments.

Growth through production optimization and product development

At the core of Fintoil’s strategy is a significant scaling of the business over the current decade. The company has developed strongly in recent years, with annual revenue increasing by tens of millions of euros. The company targets significant annual double-digit revenue growth from 138 million euros in 2025 (96 million euros in 2024) and aims to achieve an EBITDA margin of approximately 20 percent by 2030.

The immediate focus is on realizing the full potential of the Hamina facility while the company expands its product portfolio and builds a strong global market position. The company is carrying out industrial investments to continue optimizing its product mix by targeting sales toward higher-value end markets, which supports the strengthening of the EBITDA margin.

Strong demand in the advanced biofuels market

Fintoil’s development reflects a broader transformation in the energy sector, where the role of renewable and sustainable solutions is growing rapidly. Demand is supported by strong market growth for advanced biofuels, driven by the implementation of the Renewable Energy Directive (RED III) and national renewable fuel distribution mandates in Europe. Fintoil is aiming for a strong position in growing markets by offering competitive and scalable solutions to replace fossil-based raw materials. The company’s competitiveness is based on modern and cost-efficient production.

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1605

Out of the €70m in debt capital, €40m still remains, plus of course their own cash pile of approx. €10m after the Fintoil investment. I wonder if Norsupyssy™ (Elephant Gun™) has more targets in its sights?

In my opinion, this is a good investment by Taaleri and for a decent amount, too. If I understood correctly, Taaleri Biojalostamo Ky is exiting Fintoil entirely and will receive approx. €2.5m for it? Does Taaleri Sijoitus Oy now own approx. 35% of Fintoil, or does Taaleri have another subsidiary still invested in Fintoil?

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1606

Taaleri Biojalostamo Ky is a Taaleri fund, which, according to their website, has a size of 42 million euros.

This fund is selling its stake in Fintoil, and as a result, Taaleri will receive approximately 2.5 million euros in performance and success fees from the fund in question.

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1607

The press release mentions growth and potential industry consolidations. Could Fintoil and UPM’s biofuels segment form a joint venture in the future? Now that UPM has been spinning off parts of the company and the Rotterdam refinery was not built.

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1608

An interesting arrangement. The Biorefinery Fund (Biojalostamo-rahasto) is divesting at the same time Fintoil secures significant new growth funding from HitecVision and Taaleri. The question arises whether the investors in the Biorefinery Fund perceive this as a successful exit or if a significant portion of the potential future value creation was left to the new owners. How do others see this?

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1609

Here is Kasper’s take on this latest news. :slight_smile:

Taaleri announced on Tuesday that it is investing 30 MEUR in the biorefinery Fintoil, together with the Norwegian private equity firm HitecVision. The total amount of the funding round is approximately 105 MEUR. We had been expecting a larger transaction from Taaleri this year, and an additional investment in Fintoil was one of the most potential targets. We view the entry of an energy-sector-focused private equity firm as a positive signal, and in addition, the arrangement clarifies Taaleri’s capital allocation. Ultimately, Fintoil’s future operational development will largely determine the success of the investment, so the arrangement has no material immediate impact on our forecasts or our view of the company.

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1610

Taaleri’s portfolio company Nordic Ren-Gas signs a renewable e-methane supply agreement with avanca/Alternoil

Taaleri’s portfolio company Nordic Ren-Gas has entered into a long-term supply agreement with avanca Energy AG, one of Europe’s largest players in renewable LNG (liquefied natural gas). The agreement also involves avanca Energy AG’s subsidiaries, avanca Renewables AG, which manages a portfolio of renewable fuels, and Alternoil GmbH, Germany’s largest distributor of renewable LNG. The agreement concerns renewable e-methane to be produced at the Tampere production facility. This commercial partnership is one of the largest of its kind in Europe and accelerates the construction of a fully integrated, cross-border renewable e-methane supply chain.

The agreement connects Ren-Gas’s Finnish e-methane production with avanca/Alternoil’s established renewable LNG distribution network in Europe. The renewable e-methane produced at the Tampere plant will be delivered directly to heavy transport operators via existing gas infrastructure.

The signing of the agreement is a significant step toward the final investment decision for Ren-Gas’s Tampere facility. This milestone also enables the execution of the final tranche of Taaleri’s investment.

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