Taaleri Energia – Accelerating the Energy Transition
Finnish Taaleri Energia was established to invest in utility scale renewable energy & provides end-to-end project competence for each investment.
Taaleri Energia has one of the largest dedicated wind and solar investment teams in Europe managing wind and solar farms across Europe, the US and the Middle East. Taaleri Energia is also one of the largest private equity owner-operators in the Finnish wind market, with 116 turbines producing approximately 1.8% of the country’s electricity.
Renewable energy is one of four private asset management businesses of the Taaleri Group, which has a clear strategy: to channel capital towards economically profitable undertakings that have a lasting positive impact on the environment and society.
The Taaleri Group was established in Helsinki in 2007 as a wealth management business, attracting private funds from individuals and institutions in Finland but later focused on building a private asset management business, while at the same time launching its first renewable energy funds. Today, the Taaleri Group has EUR 2.1 billion of assets under management.
In a new shape
Robin Lindahl, Taaleri Plc CEO, describes the latest business milestones: “Taaleri has emerged in a new shape recently. We have gone through a major business transformation, divesting the wealth management business in the spring of 2021 and re-defining the company strategy. Today, with renewables and private equity funds management at the core of our strategy, we are striving to be a Nordic forerunner in alternative investments focusing on sustainability.”
Taaleri’s four private asset businesses are Taaleri Energia, Taaleri Real Estate, Taaleri Bioindustry and Taaleri Infrastructure. Taaleri also owns Garantia, an insurance company acquired in 2015, a business that has been growing steadily and profitably.
The Group’s restructuring, and the new strategy, reflects global market developments, says Mr Lindahl: ‘There are certain growing megatrends worldwide, of which climate change and the need to reduce CO2 emissions are the most prominent. These drive our energy and bioindustry businesses. The world is transferring from fossil to non-fossil fuels, and the demand for clean, renewable resources will increase rapidly.”
“We have defined our strategy around this transformation. Over the last ten years, we have shown that we have the capability to match this demand, and to bring interesting and attractive products to our investors.”
Lindahl affirms that the company’s key strength and clear differentiator is its combined capabilities – Taaleri has been developing strong end-to-end competences and know-how, doing everything from project development to project construction management, operational asset management and running successful exits. “We are not purely a financial player. We bring a combination of engineering and management skills, adding value to the investments.”
As a result of the divestment of the wealth management division, the Taaleri Group has a solid financial base to accelerate growth of the funds business, and is open to new opportunities, also outside its four core areas of focus.
“This is a very exciting time for us. The whole industry is transforming, and we are well positioned to meet future needs. We want Taaleri to develop into an attractive platform, a new kind of funds business, and both organic and non-organic growth is on the agenda,” Mr Lindahl affirms, adding that the planned growth is not limited to Finland.
Wind and solar
The largest private asset management business of the company by far is Taaleri Energia, accounting for approximately 55% of the assets under Taaleri’s management.
Kai Rintala, Managing Director Taaleri Energia says: “As Robin explained, we are a Helsinki-headquartered renewable energy developer and fund manager, with a focus on utility scale wind and solar PV energy, both domestic and international.”
“Our job as a fund manager is to simply raise money from investors, identify and make good investments, provide investors with a stable cash yield and then sell the assets with a good profit that goes to the investor again. That’s the cycle, and that is our business model in a simple form. Our end-to-end expertise is reflected in the investment returns, and that’s why our investors come back to us.”
A good example of this expertise is Taaleri Energia’s recent investment, from its Taaleri SolarWind II fund, in two ready-to-build wind farms in Finland with a combined capacity of 252 MW. The Isoneva wind farm was developed by Taaleri Energia and Intercon Energy, whilst the Murtotuuli wind farm was developed entirely in-house by the Taaleri Group. Construction work on both projects started in April 2021, and both are expected to be fully operational in the fourth quarter of 2022.
“These two Finnish wind investments are an excellent addition to the Taaleri SolarWind II fund’s Nordic portfolio, and they demonstrate the value of our in-house project development, construction, technical and commercial management capabilities”, affirms Kai Rintala.
Taaleri Energia’s focus is on utility scale onshore wind and solar PV energy, but it is expected that in the next few years, electrical storage will emerge as a major area of interest and that will be a natural extension for the business, says Kai Rintala.
The Taaleri Energia team is currently investing its fifth renewable energy fund, the Taaleri SolarWind II fund, with a diversified portfolio of ready-to-build assets in five key markets; the Nordics & Baltics, Poland, South East Europe, Iberia and Texas. It is estimated that the fund will finance over 850 MW of renewable energy capacity, which will offset over 1 million tonnes of CO2 annually throughout the 25-year plus lifetime of the assets.
With the whole world turning to renewables, are there any challenges for the rapidly growing business? “The biggest challenge is that there is too much money ready to be invested in this sector but not enough skilled people to make the right investments. In this respect, we are privileged – we are based in Helsinki where there are limited number of private equity funds, so we are one of the most desirable employers in the city and can capture the best talent,” he points out.
Robin Lindahl adds: “We are making Taaleri a platform for nurturing and developing these private equity funds. In doing so, we are making a significant contribution to the transition to renewable energy and a more sustainable development of our society”
“While we are currently a medium-sized business, we aspire to be one of the very top in our field. We see an ever-increasing appetite for these types of funds and products. To use the cliché, the future is bright,” concludes Mr Rintala.
Robin Lindahl, CEO Kai Rintala, MD, Taaleri Energia