Taaleri: Takeaways from the Investor day - Nordea

Taaleri hosted today its first Investor day where business unit leaders gave business update. Overall, the event gave only little new information, while we make following remarks. 1) The company expects positive momentum within alternatives to continue although the current market environment with increasing interest rates might have some implications in near term. 2) The company aims to continue to optimise its over capitalised balance sheet. 3) SolarWind III is currently under soft market testing and should start fundraising in 2022 with first closing in 2023. Target size is still under review, while we believe the company aims to double SolarWind II size (EUR 354m of committed capital). 4) Despite higher interest rates, the management noted that higher electricity prices and slightly increased PPA prices mitigate cost inflation. 5) In real estate, the company has not seen any changes in foreign investors willingness to invest into sector nor in yields in the market. 6) Bioindustry I fund was closed a week ago with targeted EUR 80m size and the company continued fund raising due to good demand. Fund has a five year investment period, although management was now expecting 3-4 year investment period for the fund and is planning to start preparations for Bio II fund in 2024. 7) Currently, Garantia has not seen any implications from cooling housing market while fixed income market will cause headwind for earnings. Duration of fixed income portfolio is currently 3.3 years, while the company is currently making new investments with less than two years duration.