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mttssn research · Nordic Deep Dive
Taaleri (TAALA.HE)
Financials · Finnish alt-asset manager + Garantia guaranty insurer · FY2025
Analysis date: 2026-06-08
Price at analysis: €7.47
Method: mttssn_streamlined_v1
Conviction: MEDIUM
HOLD
Conviction: MEDIUM
A Finnish alternative-asset manager (renewable-energy and private-asset funds, AUM EUR 2.7bn) that also owns Garantia, an exceptionally profitable guaranty insurer (combined ratio 35%, solvency 243%, S&P A-). Net-cash and fortress-capitalised, trading ~at book (0.99x P/B, 12.7x earnings) on a depressed 2025 (reported ROE ~9.5%; performance fees were ~nil). On a normalized through-cycle ~11% ROE the Gordon fair value is ~EUR 8.7 (+16%); the upside hinges on AUM/fee growth and the return of fund-exit performance fees against a 2026 AUM headwind. HOLD, modest positive tilt; base EUR 8.0.
Return on Equity
9.3%
Cost of equity ~10.0%
Price / Book
0.94×
0.99× book (~at book)
Fair P/B (Gordon)
0.90×
(ROE−g)/(COE−g); g 3%
Price / Target
€7 → €8
+7% base; HOLD
Price / Earnings
10.1×
~12.7× earnings
P / TBV
0.95×
Price / tangible book
Economic Profit
€-5M
Residual income ~zero through-cycle; ROE ~9-11% ~= 10% COE
Equity (book)
€223M
Net cash; ~EUR 164m of equity is Garantia regulatory capital
Thesis

Taaleri is a Finnish alternative-investment manager — renewable-energy funds (wind/solar, ~EUR 1.8bn of EUR 2.7bn AUM) plus bioindustry, real estate and PE — that also owns Garantia, a guaranty/credit insurer. The structure is a hybrid, so the right lens blends an asset manager (fees, AUM) with a small insurance balance sheet. The standout asset is Garantia: a combined ratio of just 35% (structurally low-loss guaranty insurance), a 243% Solvency II ratio, an S&P A- rating and EUR 19.5m of the group's ~EUR 26m operating profit, paying a EUR 15m dividend up to the parent.

On equity primitives it trades ~at book (0.99x P/B owners' basis, ~12.7x earnings). 2025 was a depressed year — reported ROE ~9.5% (owners' basis ~7.9%) with performance fees ~nil — versus 15.3% in 2024 and a negative Q1 2026 (investment fair-value losses); earnings are genuinely lumpy. On a normalized through-cycle ~11% ROE the Gordon fair value is ~EUR 8.7 (+16% from ~7.5), but residual income is roughly zero through-cycle (the group earns about its ~10% cost of equity), so this is a fair-value, fortress-balance-sheet, optionality story rather than a wide-spread compounder. The binding question is growth: management flags that 2026 fund exits (end-of-lifecycle funds) will shrink AUM and the fee base, so re-rating needs AUM growth + the return of performance fees.

Valuation · residual income (equity frame) & scenarios

Trading ~at book (0.99x P/B, ~12.7x earnings) on a depressed 2025. Gordon fair P/B = (ROE-g)/(COE-g) with COE 10%, g 3%: a normalized ~11% ROE gives a fair value ~EUR 8.7 (+16%); the depressed reported ROE implies ~EUR 7.0 (-6%).

Base EUR 8.0 (a modest re-rate from book toward normalized fair as fees recover); bull EUR 9.5 if AUM/fee growth resumes, performance fees return and Garantia's value is recognised; bear EUR 6.5 if AUM shrinks on fund exits and depressed earnings persist.

Market-implied ROE
9.6%
sustainable ROE the price already demands — vs 9.3% observed
Current → Fair P/B
0.94× → 0.90×
at a sustained 9.3% ROE, Ke 10.0%, g 3%
Excess-return premium
€-1 / sh
value above €7.91 book from the -0.7pp ROE−Ke spread

The operating reverse-DCF (NOPAT / invested capital / WACC) does not apply to a balance-sheet business — leverage is the raw material and "net debt" is not meaningful. The equity is valued on residual income: book equity plus the present value of returns above the cost of equity, discounted at Ke; the single-stage lens is the Gordon fair price-to-book, (ROE−g)/(Ke−g). The market prices in a sustainable ROE of 9.6% vs 9.3% currently earned; at a sustained 9.3% ROE the warranted P/B is 0.90× (€7/sh, -4%).

Scenario24m targetImpl. ROEUpsideProb.Driver
Bull€1011%+27%30%AUM/fee growth resumes; performance fees return; Garantia recognised
Base€810%+7%45%Modest re-rate from book toward normalized fair as fees recover
Bear€69%-13%25%AUM shrinks on fund exits; depressed earnings persist
Prob-weighted€8+8%100%Scenario-weighted expected value

Sensitivity — fair value / share at Ke × ROE

Ke \ ROE10%14%18%22%26%30%34%
8.50%10162227333945
9.25%9141924293439
10.00% (base)8121721263035
10.75%7111519232832
11.50%7101418212529

Green = fair value above the current price of €7.47. For a financial the surface is dominated by cost of equity and sustainable ROE — not unit growth.

Method & data. ROE 9.3% and book equity are observed (net income / total equity). Cost of equity 10.0% and terminal g 3% are assumptions, shown explicitly and overridable.

⤓ Download the full model (.xlsx) — formula-driven sheets; flex the blue input cells and the model cascades in Excel.

Key drivers

1. Garantia franchise

An exceptionally profitable, A-rated guaranty insurer (CR 35%, solvency 243%) — a hidden asset + cash engine.

2. Renewables-fund AUM

EUR 1.8bn renewable-energy AUM with structural tailwinds (when fund-raising resumes).

3. Performance-fee optionality

Fund-exit carried interest can lift earnings materially in a good year.

4. Fortress balance sheet

Net cash, 72.8% equity ratio — downside protection + capital-return capacity.

Key risks
Conclusion

Taaleri is a net-cash, fortress-capitalised Finnish alt-manager with an exceptional hidden asset in Garantia, trading ~at book on a depressed 2025 — fairly valued with modest upside if AUM/fee growth and performance fees return. HOLD, modest positive tilt; base EUR 8.0.

The fortress balance sheet and Garantia underpin the floor; the re-rating levers are AUM growth and the return of fund-exit performance fees against a 2026 AUM headwind.

Footnote evidence & sources

Every adjustment traces to the cited note/page in the source filing — click to open it there. Annual report / 10-K: 📄 open

Adjustment / figureValueSourceWhy mttssn treats it this way
Profit for the period attributable to owners (FY2025)16.617Consolidated statement of comprehensive income p.33 📄 p.33ROE numerator (owners basis). Total profit 20,750 split: owners 16,617 + NCI 4,134.
Profit for the period, total group (FY2025)20.75Consolidated income statement p.33 📄 p.33Total group profit; company-reported ROE 9.5% is on this figure over avg total equity.
Management fees and other continuing earnings (IFRS, FY2025)32.027Consolidated income statement p.33 📄 p.33RECURRING fee income on the IFRS income statement — the durable revenue line, separated from performance fees.
Performance fees (IFRS, FY2025)-0.016Consolidated income statement p.33 📄 p.33Performance/carried-interest fees effectively NIL in 2025 (EUR -0.016m) vs EUR 1.845m in 2024 — the lumpy line that drives ROE volatility.
Revenue (IFRS, FY2025)63.662Consolidated income statement p.33 📄 p.33Total IFRS revenue. Segment-basis revenue is EUR 61.2m (p.6); difference is presentation of associates/transit items.
Operating profit (FY2025)26.046Consolidated income statement p.33 📄 p.33Group operating profit; 42.4% of segment revenue. Used to derive effective tax rate (tax 4,944 / PBT 25,695 = 19.2%).
Total equity (31 Dec 2025)223Consolidated balance sheet p.35 📄 p.35Capital base. Owners' equity = 222,750 - NCI 9,053 = 213,697 (the P/B & ROE denominator).
Non-controlling interest (31 Dec 2025)9.053Consolidated balance sheet p.35 📄 p.35NCI deducted from total equity to reach owners' equity 213,697; NCI is meaningful here (Garantia/fund-level minority).
Equity per share (FY2025)7.59Per-share key figures p.31 📄 p.31Owners' equity 213,697 / 28,168,995 shares ex-treasury = EUR 7.586 (company-rounded 7.59). Confirms owners-equity figure and BVPS.
Earnings per share, basic (FY2025)0.59Consolidated statement of comprehensive income p.33 📄 p.33EPS basic EUR 0.59 (diluted 0.57). At price 7.47 implies P/E 12.7x; company P/E 13.2x at the 7.81 close.
Return on equity (FY2025, annualised)0.095Per-share / key figures p.31 + p.4 📄 p.31Company-reported ROE 9.5% (total basis); ROE at fair value 10.7%. A depressed year vs FY2024's 15.3%; normalized through-cycle 11.0% used for valuation.
Assets under management (Private Asset Management, FY2025)2.7Key figures p.2 + Highlights 📄 p.2AUM EUR 2.7bn, +1.0% YoY (renewable energy EUR 1.8bn). The forward fee driver; management flags 2026 fund exits will reduce it.
Segment continuing earnings (FY2025, group)42.2Group key figures p.2 📄 p.2Wider 'continuing earnings' metric +4.4% YoY: PAM 29.8 + Garantia 11.9 + Other 0.4. Garantia's share = insurance service result, not a fee; hence wider than IFRS management-fee line 32.0.
Garantia combined ratio (IFRS, FY2025)0.353Garantia segment p.13 📄 p.13Underwriting profitability 35.3% (2024 24.9%; Q1 2026 21.8%) — exceptionally profitable guaranty-insurance underwriting. Claims ratio 9.2%, expense ratio 24.4%.
Garantia insurance revenue & service result (FY2025)12.6Garantia segment p.13 📄 p.13Insurance service result EUR 12.6m on insurance revenue EUR 19.4m. The recurring underwriting profit; -11.4% YoY on normalised higher claims.
Garantia solvency ratio (Solvency II, FY2025)2.432Garantia p.14 + APM table 📄 p.14Solvency II ratio 243.2% (2024: 262.7%) — very strong capital buffer; S&P rating A- (stable). Supports the EUR 15m upstream dividend.
Dividend per share proposed (FY2025)0.3Dividend proposal of the Board p.7 📄 p.7EUR 0.30/share (two EUR 0.15 instalments), total EUR 8.45m, 50.9% payout, ~4.0% yield. Cut from EUR 0.50 (FY2024) on lower profit.
Number of shares at end of period (ex-treasury, FY2025)28,168,995Per-share key figures p.31 📄 p.3128,168,995 shares ex-treasury (27,258 own shares held). Used for BVPS, P/B and market cap.
Q1 2026 continuing earnings & operating profit10.5Interim Statement 1 Jan-31 Mar 2026 (29 Apr 2026)Q1 2026 continuing earnings EUR 10.5m (+12.6%; PAM 6.7, Garantia 3.7); revenue EUR 12.6m (+46.4%); operating profit EUR 2.1m; EPS 0.04; Garantia combined ratio 21.8%. BUT annualised ROE -2.8% on investment fair-value losses — illustrates the lumpiness.
Share price TAALA.HE (verified live)7.47Stockopedia / Investing.com / Borsdata, week of 2-5 Jun 2026Verified live Helsinki close EUR 7.47 (~2026-06-08); corroborated EUR 7.49 (MarketScreener 2 Jun) and market cap EUR 210.6m (Stockopedia). Used for all live multiples.
Analysis history

How the mttssn view has evolved — each prior dated note is preserved.

Quality · Buffett tenets10 / 15
Understandable business
Taaleri — Finnish alternative-asset manager (renewable-energy/PE funds) + Garantia (guaranty insurer); a hybrid, less legible structure.
Durable moat
Moderate: a renewables-fund niche + Garantia's structurally low-loss guaranty franchise, but AUM is flat and fees are lumpy.
Able & honest management
Net-cash, conservative; the dividend was cut (0.50 -> 0.30) to a sustainable level — prudent, if a signal of softer earnings.
Financial strength
Fortress: net cash, 72.8% equity ratio, Garantia solvency 243% (S&P A-) — exceptional balance-sheet strength.
Margin of safety
Limited: ~at book (0.99x) and ~12.7x earnings — a fair price; upside needs AUM/fee growth + the return of performance fees.