The leading Baltic asset management group Invalda INVL’s client assets under management grew to EUR 1.58 billion at the end of June 2024 and were 10% larger than at the start of the year. The group achieved gains of EUR 60.3 million for its clients in the first half of 2024.
Invalda INVL’s equity at the end of June this year was EUR 189.07 million, or EUR 15.66 per share. The figures were 46.6% and 43.6% larger, respectively, than a year earlier, including dividend payments.
In the first half of 2024, Invalda INVL had an unaudited net profit of EUR 11.71 million, whereas in the same period last year it had a loss of EUR 1.41 million.
“We’ve been focused on our main priority – managing entrusted investments and exploring new market opportunities. We’re also actively working on the continued development and growth of the group’s business,” Invalda INVL CEO Darius Šulnis says.
In June 2024, Invalda INVL successfully completed a first EUR 10 million public offering of notes to Baltic institutional and retail investors. The debt securities were 2.9 times oversubscribed. The Bank of Lithuania has approved the base prospectus of Invalda INVL for a programme of up to EUR 25 million of public notes offerings.
Asset management and family office business
Invalda INVL’s revenue from its asset management and family office business, i.e. the management of assets entrusted to the group by clients, was EUR 5.96 million in the first half of 2024 and shrank by 23% compared to January-June 2023. The reason for the decrease in revenue in the period of comparison is that the revenue from the retail business transferred to Šiaulių Bankas in early December last year is no longer included.
This result for the company’s strategic business, also including its investments in the products it manages, was a profit of EUR 5.33 million, compared with a loss of EUR 2.22 million in the same period last year.
A key priority this year is the launch of the INVL Private Equity Fund II established at the beginning of April to continue the successful work of the INVL Baltic Sea Growth Fund. The new private equity fund will invest in businesses in the Baltics, Poland and neighbouring countries. The fund aims to raise at least EUR 250 million, making it the largest in the Baltics, and will have a hard cap of EUR 400 million.
The INVL Sustainable Timberland and Farmland Fund II signed agreements with banks in the second quarter of this year on EUR 17.6 million in loans for sustainable investments in forest and land. The INVL Renewable Energy Fund I obtained EUR 24.4 million in financing from the European Bank for Reconstruction and Development and the Eiffel Investment Group for the construction of a solar power plant in Romania. The INVL Renewable Energy Fund I plans to invest over EUR 330 million in projects in Romania and Poland, all to be completed by the end of the third quarter of 2026.
INVL Financial Advisors, the financial brokerage company that owns the INVL Family Office brand, in January established a subsidiary in Latvia to provide investment services and in July began providing services in Estonia as well.
Equity investments
Invalda INVL’s other equity investments, aside from asset management, had a EUR 7 million impact on earnings in the first half of 2024.
“Invalda INVL’s performance in the first half was positively influenced by the good results of the banks in which the company owns stakes and their growth in value considering the significant dividend amounts paid out,” Invalda INVL’s CEO says.
The positive impact of Šiaulių bankas on Invalda INVL’s pretax profit was EUR 5.81 million, which that of Moldova-Agroindbank (maib), Moldova’s largest bank, was EUR 2.29 million.
On 31 May this year, Invalda INVL, Tesonet Global and Willgrow completed an acquisition of 16.33% of the shares of Šiaulių Bankas from the European Bank for Reconstruction and Development. Following the transaction, Invalda INVL increased its shareholding in the bank to 19.93%.
The results of Litagra, one of Lithuania’s largest agribusiness groups had a negative impact (of EUR 1.1 million) on the value of Invalda INVL’s investments.
“Although Litagra’s operating results are improving, they are not where we would like to see them. We hope for progress in the coming quarters,” Darius Šulnis says.
Additional information
Assets under management (AuM) refers to the assets we manage or have under supervision and generally equals to the sum of the following: fair value of managed or supervised assets (for example, NAV or capitalization of funds) and uncalled capital commitments. This AuM represents the size of assets to which the Group has economic influence through management or supervision.
Our calculations of AuM may differ from the calculations of other asset managers. As a result, these measures may not be comparable to similar measures presented by other asset managers. The reported amount is the aggregated, not consolidated, sum of the assets.
About Invalda INVL
Invalda INVL is the leading Baltic asset management group with a track record spanning over 30 years. Growing and developing with an open approach, it creates well-being for people through its work. The group’s companies manage or have under supervision more than EUR 1.5 billion of assets across multiple asset classes including private equity, forests and agricultural land, renewable energy, real estate as well as private debt. The group’s scope of activities also includes family office services in Lithuania, Latvia and Estonia, management of pension funds in Latvia, and investments in global third-party funds.
The shares of Invalda INVL have been traded on the Nasdaq Vilnius stock exchange since 1995. Further information is available here: https://www.invaldainvl.com/en/ .
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