Taaleri is a specialist in investments, private asset management and non-life insurance, powering change with capital in its investments as well as society at large.
Taaleri’s business model
Taaleri is a frontrunner in renewable energy, bioindustry and housing investments as well as credit risk insurance. We create value by combining extensive know-how, deep expertise, entrepreneurship and capital through both funds under management and direct investments. We work in close cooperation with our credit risk insurance customers and partners.
Taaleri’s business consists of three independent, yet synergistic businesses:
- The Garantia segment includes Garantia Insurance Company Ltd , which offers credit risk insurance.
- The Private Asset Management segment includes renewable energy, bioindustry and real estate businesses.
- The Investments segment includes the Group's investments in Taaleri’s own funds and other direct investments, project development and non-strategic investments.
In addition, the Other group is used to present Taaleri Kapitaali and Group operations not included in the business segments.
Garantia
Garantia is a non-life insurance company owned by Taaleri.
Garantia Insurance Company provides customers with easy and cost-effective credit risk solutions and new business opportunities through digital channels. The company's business is divided into credit risk insurance and investment operations. Through its credit risk insurance operations, Garantia has enabled over 100,000 home purchases in Finland since 2005.
Garantia’s business is stable, highly profitable and generates strong cash flow. Garantia’s operations provide a risk buffer to the cyclicality of other business segments.
Guaranty insurance business
Garantia’s credit risk insurance business consists of consumer business and corporate business. The consumer exposures consist of residential mortgage guaranties and rent guarantees underwritten to private households. The residential mortgage guarantee is a supplementary collateral underwritten to cover a housing loan. The rent guarantee protects landlords against tenants defaulting on obligations specified in lease contracts. Most of the consumer exposure is made up of the residential mortgage guaranty portfolio. The corporate exposure is made up of corporate loan guarantees, commercial bonds, and other business-related guarantees. The guaranteed companies in the corporate portfolio mainly include medium and large Finnish companies and other organisations.
Garantia’s investments
Garantia’s investment portfolio mostly consists of fixed-income investments, of which the majority was made up of investments in bonds of Nordic companies, credit institutions and insurance companies with strong creditworthiness. The fixed-income investments also include bond funds that invest in government debt securities. The investment portfolio also includes equity and private equity investments as well as real estate investments.
Private Asset Management
Taaleri’s private asset management business focuses on managing mainly closed-end funds that invest in either renewable energy, real estate and bioindustry development, assets and companies. We focus on scaling our existing strategies while selectively introducing new products.
The segment highlights scalable recurring revenue from management fees as well as performance fees. The fee base grows together with new fund vintages and increased assets under management. Private Asset Management provides a long-term growth play where strong past performance enables new growth opportunities.
Sustainable asset management
In our new funds, we invest either with a sustainability objective or promote sustainable development. We have defined sustainability targets for our funds, the fulfilment of which we measure and on which we report to the investors of the funds.
Earnings model
Earnings consist of mainly management fees and performance fees. Typically, the fund’s performance fee is realised in full or to a large extent in connection with the fund exit.
In new private equity funds, the management fee is typically earned for the first years based on the amount of the fund’s investment commitments and, after the investment period, on the investment assets under management. Exits carried out after the fund’s investment period reduce the assets under management. Where a fund exceeds its targets, it may distribute performance fee in accordance with the fund’s rules. Taaleri assesses performance fees and their realisation every quarter, at which time performance fees are recognised as income if the specified conditions are met. The final amount of the performance fee will be determined in connection with the exit of the fund or co-investment, at which point the performance fee will be paid.
Investments and Development Capital
The Investments segment includes the Group's direct investments and development capital activities. Its results consist of interest income, fair value changes, gains and losses on disposals of investments and results of associated companies accounted for using the equity method as well as fees and dividends.
Investments are a short to medium-term profitability driver for Taaleri. Investments generate recurring revenue from management fees, dividends and interest. Value is realised through exits and value trap investments.