Finnish wealth management firm, Taaleri, is acquiring the 25% share of its private equity subsidiary that it does not already own from the group’s CEO, Deputy CEO and other key individuals in an €12 million, all-cash deal. Taaleri Private Equity Funds were launched in 2009 to offer the firm’s wealth management clients opportunities to invest in private equity investment opportunities, mainly in the renewable energy and forestry sectors as well as in real estate developments and housing.
In February this year, Taaleri’s private equity funds announced a significant expansion in their allocation to Cytonn Investments, the Kenyan investment company, to deploy though their real estate project development firm. Cytonn Real Estate is developing a number of projects in Kenya, with an emphasis on the low- to middle-income housing segment. In addition to Kenya, Taaleri has a number of real estate investments in Rwanda and Mozambique.
Commenting on the deal, Peter Fagernäs, the Chair of Taaleri’s Board said “Taaleri Private Equity Funds Ltd is a strategic priority for the Group. The Board of Directors believes that the importance of the business for the Group will grow. 100% holding in subsidiaries facilitates operational management and planning, and, above all, simplifies investment processes in this important business.”
In 2015, Taaleri’s private equity business posted revenues of €13.7 million and an operating profit of €6.7 million, a profit margin of 49%. The subsidiary’s return on equity was 85%.