Taaleri invests in people

CO-INVESTOR

Taaleri invests in ideas and people

Text Marianna Salin    Photo Petri Krook

Taaleri was created as a wealth management house and grew into an investment and financial services group. Now it is growing new areas of direct financing.

Taaleri was created as a wealth management house and grew into an investment and financial services group. Now it is growing new areas of direct financing.

What started as a traditional wealth management financing group called Taaleritehdas, the company now goes by the name Taaleri and, year by year, is operating more strongly also as a private equity investor.

“Side by side with our clients, we have invested about one billion euros in Finland,” says Deputy CEO Karri Haaparinne.

According to Haaparinne, Taaleri invests primarily in good ideas and in people who can implement their idea.

“It all culminates with people,” Haaparinne crystallises.

Taaleri and its clients own, e.g., forests, real estate, wind power and biopower around Finland. The common denominator of most investment targets is that they produce a relatively steady cash flow.

When Taaleri’s investment decisions are not driven by cash flow, they are driven by the target’s probable increase in value. And even then, Haaparinne assures, Taaleri is quite a patient investor. He points out that Taaleri doesn’t go to the Board of a company to set the pace, regardless of whether it’s a majority or minority shareholder.

“We try to find the best person from our network to represent us based on the kind of expertise the company needs.”

Focus on intellectual capital

The same principle of investing in good ideas and people applies not only to investment activities but also to Taaleri’s own business. For example, Taaleri’s decision to expand abroad was driven by market outlook, but it was ultimately supported by the fact that the right people happened to be in Istanbul and Nairobi.

Taaleri launched a wealth management company in Istanbul and an office in Nairobi to manage the company’s real estate investments in rapidly developing East Africa.

“An investment in East Africa is the best possible development aid and, at the same time, a good investment for our clients. The risks there are definitely different than what they are here, but so are the opportunities.”

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“Taaleri is quite a patient investor,” says Deputy CEO Karri Haaparinne.

Dedicated fund for each investment target

When Taaleri started private equity investments, it was a new concept that a private individual could participate through funds. Haaparinne still considers Taaleri’s way of operating unique because each investment target has its own fund. So the investor chooses the target directly, not just the sector or geographical region.

Haaparinne emphasises that the investor doesn’t have to commit to a fund in advance. Last December when Taaleri invested in the shipbuilding company Rauma Marine Constructions, it primarily used its own capital for the investment. Taaleri presented this investment target to its clients in February.

Growth from direct financing

Taaleri is once again expanding the playing field for private individuals and also for its own business.

“We thought why shouldn’t a private person receive a guaranty for their investment if they wanted to invest in, say, a forest or real estate,” Haaparinne says.

As part of this thought process, last spring Taaleri acquired Garantia, which specialises in guaranty insurance policies.

Taaleri continued its forward thinking on the issue and last year acquired a stake in Fellow Finance, which offers peer-to-peer lending services. It provides private individuals direct financing from investors, i.e. a loan from other private individuals through an online service.

A new online service was launched for Taaleri’s clients in February. In the early years, the company required a minimum investment of half a million euros from its clients, but now it’s possible to participate with smaller amounts.

“We believe in the growth of digitalisation and direct financing. At some point, the bank in the middle will be eliminated.”

Taaleri Plc   

  • Established in 2007.
  • Wealth management and financing services for institutional investors, companies and private individuals.
  • Personnel: About 180.
  • Offices in Helsinki, Tampere, Turku, Pori, and Oulu in Finland, and in Istanbul, Turkey, and Nairobi, Kenya.
  • Assets under management EUR 3.9 billion.
  • Wealth management clients in total 3,300.
  • Listed on the First North Finland marketplace, maintained by NASDAQ OMX Helsinki.

Taaleri as FII’s partner

In December 2015, FII, a fund managed by Taaleri, and Finda invested in the growth of Rauma Marine Constructions (RMC).

During the investment round RMC’s share capital will increase to nearly 25 million euros. This will enable the company to implement shipbuilding projects of a significant scale.