Translation: Original published in Finnish on 8/13/2026 at 10:50 am EEST.

Mandatum announced on Thursday that it will acquire a 78.4% stake in the Swedish asset manager Cliens for a purchase price of 64 MEUR. We consider the long-awaited acquisition an excellent step towards unwinding the company's overcapitalized balance sheet. Sweden is a logical expansion market for Mandatum, and the target's compatibility appears strategically very good. We consider the valuation multiples of the transaction to be quite moderate, although this is justified given the target's risk profile. We are positive about the arrangement as a whole, and it will raise the Group's earnings forecasts by approximately 5%.

A complementary and strategically logical step for the product offering

Cliens is a specialized fund house whose approximately 3.3 BEUR (36 BSEK) in assets under management (AUM) is practically entirely in funds. Mandatum has been building its institutional client business in Sweden for a long time, and we believe that expanding through an acquisition in Sweden is a logical step. We understand that the majority of Cliens' assets under management come through distribution partners, i.e., from smaller investors. In addition, the company itself serves some one hundred institutional clients. Overall, the company's fee margin of 0.6% is relatively low for a specialized product house, reflecting the significant role of distributors. As a significant portion of the distribution comes through partners, Cliens itself is an extremely efficient organization. It has only 26 employees, and AUM per employee of ~130 MEUR is very high (2x Evli, 4x UB & CapMan). We also note that roughly two-thirds of Cliens' AUM is in one small-cap fund, and another equity fund investing in Sweden accounts for almost a quarter of the total AUM. These two funds account for over 80% of the total AUM, and this is a key risk of the transaction, especially as the small-cap fund has seen significant capital outflows in recent years due to subdued returns. Strategically, the companies' compatibility appears excellent, as Cliens' strong equity expertise perfectly complements Mandatum's product offering, which has traditionally focused on fixed income investments.

Moderate valuation reflects personnel and product risks

Cliens' revenue decreased by ~5% in 2025 year-on-year to 20.2 MEUR (2024: 21.2 MEUR). EBIT, in turn, decreased by 12% to 11.2 MEUR (2024: 12.7 MEUR). We understand that all revenue consists of recurring fees, and it should not include significant performance-based or other transaction-based fees. The purchase price of 64 MEUR for a 78.4% stake roughly corresponds to a debt-free value of 82 MEUR for the entire Cliens. At this purchase price, the company's EV/EBIT multiple is around 7x, which we consider moderate for an asset manager. We also believe the price relative to AUM of 2.4% is very moderate. We note, however, that given the significant personnel risks and the aforementioned strong product concentration, the multiples should be moderate. In the transaction structure, Cliens' current management and employees will retain a 21.6% ownership stake in the company, which we consider an excellent and necessary way to commit key personnel and manage personnel risks.

Excess capital is finally put to work

We have long expected Mandatum to utilize its very strong and continuously overcapitalized balance sheet in the consolidation of the asset management market. The purchase price will be paid in full in cash. Initially, the transaction will have an approximately 10% positive impact on the company's fee result. The arrangement is expected to be completed by the end of 2026, following regulatory approvals, but there should be no major obstacles to its implementation. We note that the transaction is small for Mandatum in euro terms and has no impact on Mandatum's dividend distribution in the coming years.