Investment Management showed top-line figures precisely in line with our estimates, with revenue at SEK259m. Adjusted for the one-off costs related to IM, EBIT was also very close, at SEK36m compared to our forecasted SEK37m. AUM declined by SEK1.2bn in the quarter as a result of FX and revaluations. Inflows remain larger than outflows. Corporate Finance came in better than expected and Principal Investments had a quiet quarter, with a divestment of Polaxis scheduled in Q4. We continue to view Kaktus as the primary catalyst, with a divestment forecasted to generate a significant profit in Q1 2025e.

Management's market outlook for the near-term seems to have improved quite a bit from the last few quarters, and there is hope of buyers' and sellers' expectations merging as interest rate reductions are slowly being priced in. During the conference call, it was stated that investor interest is both intensified and more well-financed compared to only six months ago.

We leave most of our IM and Corporate Finance estimates untouched following the report, although we make som minor changes. For Principal Investments, we increase our expected profit fom the Kaktus divestment to SEK300m before tax, and postpone the transaction to Q1 2025. Our fair value range is SEK25(25)-SEK69(70), with Base Case of SEK56(56) per share. The stock is now trading at low single-digit EV/EBIT multiples when looking at the enterprise value adjusted for project-related debt and assets.