20.05.2024
There are three great options in Taaleri’s toolkit for advancing and operating within the bioindustry field.
A comprehensive toolkit and three different playing fields: this summarizes how Taaleri is able to influence and operate within the bioindustry sector.
Taaleri is one of the first private equity owner-operators in the Finnish bioindustry market, but this is just the start, and the goals are much higher.
"We want to be a significant player in the entire bioindustry ecosystem," says Tero Saarno, Managing Director at Taaleri Bioindustry.
In practice, this means investing in companies at different stages – early, growth and more mature – using various investment vehicles and asset classes.
"We can support companies at every stage of their lifecycle."
- In private equity funds, the assets under management are allocated into multiple different targets. E.g. Taaleri Bioindustry Fund I.
- The investment strategy of the fund defines, whether it is, for example, a venture capital or growth equity fund.
- Investments in early or growth-stage companies depending on fund’s strategy.
- The range of individual investments falls between 0.5 and 20 million euros.
- Investments are made in a single target, such as a manufacturing plant. Taaleri Plc can invest in same plants, utilizing its own balance sheet.
- Investments are made in large plants, such as Fintoil Hamina and Joensuu Biocoal.
- Investments are made by utilizing Taaleri Group’s (Taaleri Plc’s) balance sheet.
- Direct investments are made in the bioindustry sector.
- Investments following the new strategy have not been made yet. Previous strategy investments include Rester, among others.
- Individual investments exceed 20 million euros.
Three options: private equity funds, co-investments and direct investment
The company operates within the bioindustry sector in many ways. Taaleri is able to finance investments through private equity funds, co-investments or direct investments. The company is an asset manager, but it can also make direct investments, utilizing Taaleri Group’s (i.e. Taaleri Plc) balance sheet. Saarno says that direct investments and funds are targeted to different entities.
Saarno tells that Taaleri Bioindustry team encounters intriguing companies while investigating potential investments for funds. However, from the funds’ perspective, these companies may not be at an appropriate stage of their lifecycle, or they may not necessarily align with the funds’ investment strategies.
Yet, it's important not to pass over promising companies. These companies can end up on the desk of professionals who are working on direct investments, utilizing Group’s balance sheet. The direct investments of Taaleri Plc are made by Taaleri Investment Ltd, while Taaleri Bioindustry team manages client’s funds.
"We can support companies at every stage of their lifecycle."
Funds invest in multiple targets
In private equity funds, the assets under management are allocated into multiple different targets according to the fund’s investment strategy. In 2021, the company launched its first bioindustry fund called Taaleri Bioindustry Fund I. It is a growth equity fund, meaning its investments are targeted towards companies seeking growth.
“For Taaleri Bioindustry Fund I, the ideal investment is a company that already exists and has a small factory, and the company is seeking to scale production. Colombier is a great example of such company.”
Colombier produces, among other things, plastic-free cups for coffee, salad and ice cream.
Taaleri Bioindustry Fund I has enabled Colombier, a company producing ecological packaging, to increase its production capacity. Through the de-bottlenecking of the facility, it will be possible to produce 4–5 times more ecological packaging materials.
Through private equity funds, it is possible to engage with early-stage or growth-stage companies, depending on the investment strategies of the funds. Taaleri Bioindustry is preparing an early-stage venture capital fund, which would invest in new technologies in the bioindustry segment.
Co-investments are made in a single target
In so called co-investments, the investments are made in a single target, such as a manufacturing plant. As references, there are Fintoil Hamina and Joensuu Biocoal. Fintoil Hamina is a Finnish enterprise that has built a crude tall oil refinery in Hamina, and Joensuu Biocoal is a Finnish enterprise that builds a factory producing torrefied biomass in Joensuu. Torrefied biomass can replace coal and support hard-to-decarbonize industries. At Joensuu Biocoal, the commissioning takes place in late 2024.
In co-investments, as the name implies, the group joins forces with investors in the development of the bioindustry.
"Joensuun Biocoal will be Europe’s second largest biocoal plant, and Haminan Fintoil is the world's third largest crude tall oil refinery," Saarno says.
Taaleri’s comprehensive toolkit enables it to emerge as a key player in the broader bioindustry landscape, offering support to companies throughout their various stages.