Invalda INVL, the leading Baltic asset management group, had equity of EUR 202.5 million at the end of September this year, or EUR 16.85 per share. Those figures were 50.2% and 50.1% larger, respectively, than a year earlier, including the dividends paid this year.
In January-September 2024, Invalda INVL earned an unaudited net profit of EUR 25.8 million, an increase of 7.1 times compared to the same period last year, when the net profit was EUR 3.6 million.
“The situation remains tense, both globally and in the region where we operate directly. Despite this, the third quarter was successful for the investments we manage, generating profits for our clients,” says Darius Šulnis, CEO of Invalda INVL.
The value of client assets under management by the group’s companies grew to EUR 1.66 billion at the end of September 2024 and was up 15.3% from the start of the year. Gains of EUR 115.4 million were earned for the group’s clients in the nine months of this year.
Asset management and family office business
Invalda INVL’s revenue from the management of assets entrusted by clients was EUR 9.1 million in three quarters of 2024 and decreased by 25.8% compared to January-September 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 group’s strategic business, also including the company’s own investments in the products it manages, was a profit of EUR 13.9 million; in the same period last year, the profit was EUR 1.7 million.
“The largest private equity fund we manage, the INVL Baltic Sea Growth Fund, whose portfolio companies had combined revenues of approximately EUR 570 million in 2023 and normalized EBITDA of around EUR 82 million, plans to divest some of its matured businesses and disburse the proceeds to the fund’s investors. Our investment activities in this area will be continued by the new INVL Private Equity Fund II, which will be distributed to investors in coming months,” says Darius Šulnis, who is also the Managing Partner of the INVL Baltic Sea Growth Fund.
The INVL Partner Power Opportunities Fund, a closed-end fund for informed investors launched in September of this year, has attracted significant investor interest. In its first offering of units, the fund raised USD 24.71 million from investors.
Equity investments
Invalda INVL’s other equity investments, aside from the asset management, had a EUR 13.4 million impact on earnings in January-September 2024.
That result was positively influenced by the good performance of the banks in which the company owns stakes, their growth in value and dividend payments. Invalda INVL has invested in Šiaulių Bankas and in Moldova-Agroindbank (maib), Moldova’s largest bank.
“Maib this year has paid out a noteworthy EUR 51.4 million to shareholders via dividends and share buyback. As a result, the INVL Special Opportunities Funds investors and Invalda INVL have fully recovered the amount they invested in maib and already earned a profit on their investment. We hope and expect that the bank’s further successful growth and performance will increase the investment’s value and bring extremely high returns to those who’ve invested,” says Invalda INVL’s CEO.
“Šiaulių Bankas was also generous with shareholders this year and approved a new dividend policy aiming to pay out a minimum of 50% of annual profits to shareholders,” he adds.
The positive impact of Šiaulių Bankas on Invalda INVL’s pretax profit, including dividend payments, was EUR 10 million, while that of maib was EUR 4.4 million.
The performance of Litagra, one of Lithuania’s largest agribusiness groups, had a negative impact (a loss of EUR 1 million) on the value of Invalda INVL’s investments.
“We see positive trends in Litagra’s business. Although they’re not reflected in the 9-month results yet, those trends should positively impact the company’s activities in the coming quarters,” notes Darius Šulnis.
Attached:
Invalda INVL Group overview 30 09 2024
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 1.6 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: https://www.invaldainvl.com/en/ .