CEO’s review Q3 2025
We launched our clarified strategy and updated long-term targets during the third quarter of the year. Taaleri’s strategic focus areas include capturing Garantia’s full potential through increased brand awareness and new partnerships, expanding the Private Asset Management business by scaling products within its existing strategies and launching new ones, and fully capitalising on return opportunities within current investments through development capital while selectively exploring new investment prospects to optimise capital deployment. We seek to selectively utilise mergers and acquisitions to support the execution of our growth strategy. To advance the strategy, we are placing greater emphasis on increasing Garantia’s market share and scaling our private asset funds, alongside the selective launch of new funds. With the updated strategy and new management structure, we are taking a more active role in value creation across the lifecycle of our development capital investments. We will also provide investors with greater transparency into the development of these investments to enable an improved assessment of their value progression.
During the quarter, there were significant changes in the fair values of the Investment segment’s investments. These changes were influenced by the recent operational developments and financing arrangements of certain portfolio companies. The most notable positive change in fair value was booked for a direct wind farm investment in Texas, in which Taaleri SolarWind II Fund is also an owner. During the quarter, the wind farm’s fair value assessment shifted from acquisition cost to net asset value reported in the fund report.
Operating profit for the third quarter increased slightly compared to the strong reference period, primarily due to growth in continuing earnings within the Private Asset Management segment and changes in the fair value of the Investments segment’s investments. Group’s continuing earnings increased by 4.2% to EUR 10.1 million. The Private Asset Management segment delivered solid continuing earnings growth, while Garantia’s continuing earnings remained at the level of the comparison period. The operating profit of EUR 15.3 million for the quarter was largely attributable to positive fair value changes in Taaleri’s investment portfolio, resulting in an operating profit margin of 66.6%.
Active management in private asset funds
The fundraising period for Taaleri SolarWind III Fund, Finland’s largest infrastructure fund, has been extended until year-end to allow a major investor to complete its decision-making process. We expect the fund to continue growing. Additionally, a EUR 70 million co-investment commitment enhances the fund’s investment capacity. The fund continues to invest in projects within its development portfolio. Taaleri Wind II, Wind III, and SolarWind Funds are in the divestment phase, with exits actively pursued in a challenging market environment.
Other private asset management focused on advancing their respective strategies. Eden Living, a joint venture between Taaleri and Finland’s largest pension insurer Keva, completed its second investment in a residential development in Kivenlahti, Espoo. The bioindustry business executed its sixth growth investment from the Taaleri Bioindustry I Fund into Finnish Food Factory Oy, a producer of plant-based foods, and focused on active value creation as the fund nears the end of its investment phase. The co-invested production facility in Joensuu is producing test batches of torrefied biomass for customers as it is refining its production process.
Garantia delivers a stable performance
The volume of new residential mortgages issued in Finland increased compared to the reference period, and Garantia’s market position in mortgage guarantees has strengthened significantly during 2025. Garantia’s insurance service result grew slightly in the third quarter to EUR 3.5 million. Net investment income recognised through profit or loss amounted to EUR 3.1 million. Record-breaking stock market performance at the end of the quarter had a positive impact on Garantia’s investment activities, although the result fell slightly short of the exceptionally strong investment income recorded in the third quarter of the comparison period.
We increased transparency of the Investments segment
As part of the early autumn strategy update, we reorganised the business within the Investments segment. The segment includes development capital investments, balance sheet investments into Taaleri funds, and other investments. The investment activities are now driven by a renewed team actively identifying new investment opportunities in line with the updated process. Going forward, Taaleri will report more extensively on the progress of its most significant development capital investments. Segment revenue increased slightly from the strong reference period to EUR 8.0 million, mainly due to changes in the fair value of investments. Changes were both positive and negative. Active development of development capital projects continues.
In line with our refined strategy, we are pursuing determined growth across all three business segments. We continue to work purposefully based on our strategic priorities and see significant opportunities to develop the business by identifying and executing new growth initiatives.
Ilkka Laurila
CEO