Invalda INVL had equity of EUR 182.8 million at the end of March 2024, or EUR 15.23 per share. The figures were 39% and 37% larger, respectively, than a year earlier.
Invalda INVL had an unaudited net profit of EUR 4.7 million in the first quarter of the year, which is 4.1 times more than the same period last year when net profit amounted to EUR 1.1 million.
“It was an ordinary quarter. We worked actively with our assets under management and new opportunities, generating profit both for our clients and for the company,” Invalda INVL CEO Darius Šulnis says.
Client assets under management by the leading Baltic asset management group’s companies totalled EUR 970.9 million at the end of March 2024. Gains of EUR 27.5 million were earned for the group’s clients in the quarter.
The 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 2.9 million in the first quarter of 2024 and down 26% compared to January-March 2023.
This strategic business of the company, also including its investments in the products it manages, resulted in a profit of EUR 1.4 million, compared with a loss of EUR 0.9 million in the same period last year.
The Invalda INVL group’s assets under management grew to EUR 970.9 million at the end of the first quarter of 2024. It was the first quarter, following the merger with Šiaulių Bankas, when the company operated without a retail and insurance business.
In February 2024, the INVL Baltic Sea Growth Fund added Galinta, a producer of buckwheat and other groats, to its portfolio. Another portfolio company of the fund, Eco Baltia, strengthened its position in Latvia by acquiring a 40.4% stake in the road maintenance company Daugavpils Specializētais Autotransporta Uzņēmums and signing an agreement on the acquisition of Eko Osta, a hazardous waste collection and recycling company.
The INVL Sustainable Timberland and Farmland Fund II entered a new geographic market when in January 2024 it completed the acquisition of 1,400 hectares of forest in Romania. And in mid-March of this year, INVL Technology signed an agreement with Corum Group’s Luxembourg-based unit, Corum Group International, to advise and serve as M&A intermediary on the sale of INVL Technology’s portfolio of businesses.
INVL Financial Advisors, the financial brokerage company that owns the INVL Family Office brand, began activities outside Lithuania. In January, it established a subsidiary in Latvia to provide investment services.
This year’s most notable event after the end of the first quarter was the launch in early April of the new INVL Private Equity Fund II, which is the successor of the INVL Baltic Sea Growth Fund private equity fund. The new fund aims to raise EUR 250 million, making it the largest in the Baltics, and will have a hard cap of EUR 400 million. Additionally, May saw the launch of the INVL Private Equity Capital Fund II, a new feeder fund which will invest the money it raises from investors in the INVL Private Equity Fund II.
Equity investments
Invalda INVL’s other equity investments, aside from asset management, had a EUR 3.7 million impact on earnings in January-March 2024.
“Invalda INVL’s performance in the first quarter was also positively influenced by the further growth in the value of the investment in Moldova-Agroindbank (maib), Moldova’s largest bank. The value of Šiaulių Bankas’s shares grew only slightly, but the bank declared record dividends, which will be reflected in the second quarter. With the strategic transformation that is underway, we expect further successful development of the bank and growth of its share price,” Invalda INVL’s CEO says.
The positive impact of maib and Šiaulių bankas on Invalda INVL’s result was the same – EUR 1.8 million each. On 31 May 2024, the company completed the acquisition of Šiaulių Bankas shares from the European Bank for Reconstruction and Development and increased its equity stake to 19.93%.
“Due to unfavourable market conditions in the crop and dairy sectors, 2023 was a rather challenging year for Litagra, one of Lithuania’s largest agribusiness groups; but the situation in the market is improving, the group poised for further growth, and we expect good results this year,” Darius Šulnis notes.
Litagra’s operating results had a EUR 0.1 million positive impact on the value of Invalda INVL’s investments.
On 28 May, the Bank of Lithuania approved the base prospectus for a programme of Invalda INVL public bonds with a value of up to EUR 25 million. The company will conduct an initial EUR 10 million public offering of bonds to Baltic institutional and retail investors from 3 June to 12 June.
Factsheet for 3 months of 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 EUR 1 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 and Latvia, 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/.