What is Altum's primary function and ownership structure?

Altum is the national development bank of Latvia. According to slide 2, it is 100% state-owned, with equity split between the Ministry of Finance (40%), Ministry of Economics (30%), and Ministry of Agriculture (30%). It operates under a specific 'Law on Development Financial Institution' and serves as a strategic engine for the country's economic development by providing access to finance where private markets may fall short.

How has Altum's asset base evolved over time?

Slide 3 illustrates a consistent upward trajectory in total assets. Starting at 443 MEUR in 2016, the institution reached 851 MEUR by 2020 and surged to 1,455 MEUR by the end of 2024. This growth is driven largely by guarantees and loans, which together make up the bulk of the portfolio, alongside smaller allocations for venture capital and a land fund.

What are the risk metrics for Altum's portfolio?

The deck emphasizes low risk across its financial products. Slide 4 shows that despite the COVID-19 period, NPLs remained manageable. Specifically, slide 6 focuses on the guarantee portfolio, showing that 'Stage 3' (impaired) assets have hovered around 1% for several years (0.8% in 2021 to 1.0% in 2024), while 'Stage 1' assets (low risk) comprise 95% of the portfolio.

Who are Altum's primary customers?

Altum segments its clients into four main groups: SMEs and MidCaps, Agriculture, Individuals, and Financial Intermediaries. Slide 5 notes that SMEs and MidCaps are the largest segment by volume (436 MEUR in 2024). Individuals represent the second-largest portfolio segment at 381 MEUR, driven largely by housing guarantees and energy-efficiency projects.

What are the terms of the investment being offered?

Slide 9 details a senior unsecured note issuance of up to 80 million EUR. The notes have a 5 or 7-year tenor with a bullet repayment structure. The coupon is fixed and paid annually. The notes will be listed on the Baltic Bond List of the Nasdaq Riga Stock Exchange, with Luminor Bank AS acting as the arranger and issuing agent.

Altum Pitch Deck Teardown: A State-Backed Debt Issuance

Altum, the Development Finance Institution of Latvia, presents a highly structured case for a senior unsecured note issuance of up to 80 million EUR. As a 100% state-owned entity governed by specific national law, Altum occupies a non-competitive niche focused on economic development through loans, guarantees, and venture capital. The deck demonstrates significant scale, with total assets reaching 1,455 MEUR by the end of 2024 and a consistent Moody’s Baa1 credit rating. The presentation focuses heavily on portfolio quality, showing a stable non-performing loan (NPL) ratio of approximately 1%…

Key takeaways

Altum is 100% state-owned by the Latvian Ministry of Finance (40%), Ministry of Economics (30%), and Ministry of Agriculture (30%) as shown on slide 2.
The institution maintains a Moody’s Baa1 credit rating and managed 1,175 MEUR in financial instruments as of year-end 2024 (slide 2).
Total assets have grown steadily from 443 MEUR in 2016 to 1,455 MEUR in 2024, representing a significant CAGR over eight years (slide 3).
The business model is legally prohibited from paying dividends, ensuring all profits are reinvested into economic development (slide 3).
SMEs and MidCaps represent the largest client segment, accounting for 35% of the portfolio and 49% of new transaction volume in 2024 (slide 5).
Portfolio quality is high, with Stage 3 (defaulted) guarantees remaining stable at approximately 1.0% as of 2024 (slide 6).
Financial performance in 2024 showed a profit for the period of 28,663 TEUR, a year-over-year increase of 10,853 TEUR (slide 8).
The specific transaction ask is for up to 80 million EUR in senior unsecured notes with a 5 or 7-year tenor, intended for general corporate purposes (slide 9).

Executive Summary: The Institutional Debt Play

The investor presentation for Altum, dated May 2025, is not a typical startup pitch deck. It is a sophisticated debt issuance document designed for institutional investors. Altum operates as Latvia's national development bank, and the deck reflects this maturity. The narrative focuses on stability, state backing, and consistent portfolio growth rather than the high-risk, high-reward tropes of venture capital. With a Moody’s Baa1 rating and a clear mandate from the Latvian government, the deck serves to validate the institution's creditworthiness for an 80 million EUR bond listing on the Nasdaq Riga.

Slide 1: Title and Positioning

The cover slide establishes Altum as a "Partner and financial expert in economic development." The branding is professional and minimalist, utilizing a clean blue and white color palette. The date, May 2025, indicates this is a current or forward-looking issuance document. The subtitle immediately identifies the company's sector: economic development and financial services.

Slide 2: Strategic Engine and Ownership

This slide provides the foundational "why" and "what" of the organization. It defines Altum as a "Strategic engine for Latvia's economic development." Key data points include:

Activity: Operates 5 regional centers and 10 consulting offices in Latvia. · Ownership: 100% state-owned, divided between the Ministry of Finance (40%), Ministry of Economics (30%), and Ministry of Agriculture (30%). · Financial Instruments: A total of 1,175 MEUR as of 31.12.2024. · Key Parameters: Moody’s Baa1 rating, 38,730 contracts, and a risk coverage of 310 MEUR.

The inclusion of the "Unique Standing in the Industry" section highlights high entry barriers and operation under a special national law, which is a significant de-risking factor for debt investors.

Slide 3: Business Model and Asset Growth

Slide 3 visualizes the growth of total assets from 2016 to 2024. The bar chart shows a steady climb from 443 MEUR to 1,455 MEUR. The breakdown of these assets includes Land Fund, Guarantees, Loans, and Venture Capital. Crucially, the slide notes that Altum is the "only National Development Bank" in Latvia and that it pays "no dividend payments by law," meaning all retained earnings support future lending and stability. This is a critical point for bondholders who prioritize capital preservation and institutional liquidity over equity distributions.

Slide 4: Track Record and Credit Rating

This slide focuses on historical performance since 2017. It overlays asset growth with credit events and NPL (Non-Performing Loan) ratios. A red shaded area highlights the COVID-19 period, showing that despite the global crisis, Altum's lending pace remained steady or increased. The slide reiterates the "Unchanged, constantly high MOODY’S rating Baa1," which serves as the primary anchor for the investment grade of the proposed notes.

Slide 5: Client Segmentation

Altum breaks down its portfolio and new transaction volumes by client type. The data for 2024 shows:

SMEs and MidCaps: 35% of the portfolio (436 MEUR) and 49% of new volume (205 MEUR). · Individuals: 31% of the portfolio (381 MEUR), largely driven by housing guarantees. · Agriculture: 26% of the portfolio (316 MEUR).

The slide explains that the 19% increase in the 2024 portfolio was driven by high new volumes and slow portfolio amortization, with typical tenors ranging from 10 to 20 years. This long-term horizon is characteristic of development finance.

Slide 6: Qualitative Assessment of Guarantees

For a debt investor, the quality of the underlying collateral or guarantee pool is paramount. Slide 6 shows the "Guarantee Portfolio" from 2021 to 2024. The most important metric here is the "Stage 3" (defaulted) ratio, which has remained remarkably stable at approximately 1.0%. Meanwhile, 95% of the portfolio is classified as "Stage 1" (highest quality). This slide is intended to demonstrate rigorous underwriting standards and portfolio resilience.

Slide 7: Table of Contents / Section Divider

This slide serves as a navigation tool, highlighting that the presentation covers General Information, Key Credit Highlights, Portfolio Overview, Operating Model, Sustainable Financing, Financial Profile, and Transaction Overview. It signals a comprehensive due diligence package.

Slide 8: P&L 2024 Year-over-Year

The Profit and Loss slide uses a waterfall-style visualization to show changes between 2023 and 2024. Key figures include:

Interest Income: 40,170 TEUR (an increase of 9,953 TEUR). · Net Interest Income: 23,026 TEUR. · Profit for the Period: 28,663 TEUR (a year-over-year increase of 10,853 TEUR).

The slide demonstrates that the institution is not only fulfilling its developmental mandate but is doing so profitably, which provides a buffer for debt servicing.

Slide 9: Transaction Overview (The Ask)

The final slide in the provided sequence contains the specific terms of the bond offering. It is a technical term sheet:

Issuer: JSC "Development Finance Institution ALTUM". · Indicative Size: Up to EUR 80 million. · Ranking: Senior unsecured. · Tenor: 5 / 7 year. · Repayment: Bullet. · Listing: Baltic Bond List of Nasdaq Riga Stock Exchange. · Use of Proceeds: General corporate purposes.

What Works in This Deck

The deck is an excellent example of institutional debt marketing. It prioritizes the metrics that matter to bond investors: credit ratings, NPL ratios, state ownership, and legislative protection. The use of clear, data-heavy charts (Slides 3, 5, and 8) provides a transparent view of the company's trajectory. By highlighting the "No dividend payments by law" rule, the founders (or in this case, the executive board) effectively communicate that the institution is built for stability rather than aggressive equity growth, which is exactly what a fixed-income investor wants to hear.

What Is Missing

While the deck is comprehensive for its purpose, there are notable omissions from a general fundraising perspective:

Team Slide: There is no mention of the management team or board of directors in the provided slides. In a state-owned entity, the individual leadership is often secondary to the institutional mandate, but investors still typically look for the names and backgrounds of the CEO and CFO. · Competitive Landscape: The deck claims a "unique position in the market with high entry barriers" but does not detail how it interacts with commercial banks. While it mentions "triggering commercial banks' lending," a clearer map of the financial ecosystem would be beneficial. · Technology/Innovation: For a 2025 presentation, there is very little mention of the digital infrastructure used to manage 38,000+ contracts.

What a Founder Should Copy

Founders of fintech or lending startups can learn a great deal from Altum's approach to risk transparency. The way Altum presents its "Stage 1, 2, and 3" assets (Slide 6) is the gold standard for financial services reporting. Additionally, the P&L waterfall (Slide 8) is a much more effective way to show year-over-year growth than a simple table of numbers. It allows the investor to see exactly which levers (Interest Income vs. Impairment) drove the bottom-line change. Finally, the "Transaction Overview" (Slide 9) is a model of clarity; every founder should have a single slide that summarizes the exact terms of their round with no ambiguity.

Frequently asked questions

What is Altum's primary function and ownership structure?: Altum is the national development bank of Latvia. According to slide 2, it is 100% state-owned, with equity split between the Ministry of Finance (40%), Ministry of Economics (30%), and Ministry of Agriculture (30%). It operates under a specific 'Law on Development Financial Institution' and serves as a strategic engine for the country's economic development by providing access to finance where private markets may fall short.
How has Altum's asset base evolved over time?: Slide 3 illustrates a consistent upward trajectory in total assets. Starting at 443 MEUR in 2016, the institution reached 851 MEUR by 2020 and surged to 1,455 MEUR by the end of 2024. This growth is driven largely by guarantees and loans, which together make up the bulk of the portfolio, alongside smaller allocations for venture capital and a land fund.
What are the risk metrics for Altum's portfolio?: The deck emphasizes low risk across its financial products. Slide 4 shows that despite the COVID-19 period, NPLs remained manageable. Specifically, slide 6 focuses on the guarantee portfolio, showing that 'Stage 3' (impaired) assets have hovered around 1% for several years (0.8% in 2021 to 1.0% in 2024), while 'Stage 1' assets (low risk) comprise 95% of the portfolio.
Who are Altum's primary customers?: Altum segments its clients into four main groups: SMEs and MidCaps, Agriculture, Individuals, and Financial Intermediaries. Slide 5 notes that SMEs and MidCaps are the largest segment by volume (436 MEUR in 2024). Individuals represent the second-largest portfolio segment at 381 MEUR, driven largely by housing guarantees and energy-efficiency projects.
What are the terms of the investment being offered?: Slide 9 details a senior unsecured note issuance of up to 80 million EUR. The notes have a 5 or 7-year tenor with a bullet repayment structure. The coupon is fixed and paid annually. The notes will be listed on the Baltic Bond List of the Nasdaq Riga Stock Exchange, with Luminor Bank AS acting as the arranger and issuing agent.