Aalto Private Equity Club’s 3+1 Interview: Managing Director of the Finnish Venture Capital Association
In this series we interview Private Equity and Venture Capital industry professionals. Our interviews follow a simple 3+1 format: the first two questions focus on the interviewee's background, career, and work while the third question focuses on company-related activities. In addition, we ask each interviewee what they would like to say to students interested in Private Equity and Venture Capital.
Name: Anne Horttanainen
Current Position: Managing Director of the Finnish Venture Capital Association
Education:
Master of Laws 2002 (University of Helsinki),
Executive MBA 2022, (Aalto University Executive Education and Professional Development)
Career highlights:
Managing Director at the Finnish Venture Capital Association (current)
Finland Chamber of Commerce, Deputy Chief Executive, Director, administration, Director, dispute resolution services
The Finnish Pension Alliance TELA, Legal counsel
Finland Chamber of Commerce, Legal counsel
District Court of Helsinki. Trainee District Judge
Financial Supervisory Authority, (Capital Markets -unit), Associate Lawyer
Other interests and hobbies:
Sailing, singing, pilates
How have you ended up in your current position?
I think that the CEO position at the Finnish Venture Capital Association (FVCA) was actually a quite natural continuation of my career. I graduated as a lawyer in the early 2000s, wrote my thesis on investment service companies, and after that I have focused on corporate law, securities law, and corporate governance in my previous positions.
I had a long and diverse career at the Finland Chamber of Commerce. I advocated for a better operating environment for Finnish businesses but also, especially in recent years, I did a lot of organizational development and administrative work. During the early stages of my career, I was also trained at the bench and worked as a lawyer at The Finnish Pension Alliance TELA for a while. My previous work assignments have provided me with a broad perspective on the functions of Finnish business and society. Understanding how societal and political decisions are made and how to best influence them is also valuable in my current role.
I didn't actively plan to change jobs. I had just completed my EMBA studies at AaltoEE and was planning to have a somewhat quieter year after years of studying. However, I had started updating my CV and had planned several alternative career paths over the longer term, so as luck would have it, I received an offer regarding this position. So many pieces seemed to fall into place that it would have been foolish to stick to the original plan.
What fascinates me about FVCA is how we can contribute to building a better Finland through fostering growth. I believe I can draw a lot from my background for the benefit of the association, and at the same time, I continuously get to learn more about this fascinating field. It's a good combination of the new and the old.
How has the private equity industry traditionally approached diversity and inclusion? Have you noticed any significant changes in recent years regarding the industry's attitude towards DEI?
The industry has traditionally been male-dominated, and individuals often have background in business or engineering. Both FVCA and Tesi have conducted various diversity studies, and their figures have not been particularly flattering, especially concerning gender diversity.
According to Tesi (Finnish Industry Investment Ltd), the proportion of women in investment teams in the private equity industry is 21%. Among investment teams, women make up 21% of analysts, 42% of managers and 13% of partners.
Additionally, a study made by FVCA highlights the scarcity of women. The proportion of women on the boards of portfolio companies of venture capitalists has remained low, at 11%. The good news is that the number of women usually increases during the private equity ownership period. For comparison, the average proportion of women on boards of publicly traded companies is 31%. So, there is room and need for improvement!
However, the industry itself has expressed a desire for change, and the topic has been widely discussed. It is not desirable for an industry that is a forerunner in many other aspects to lag behind in this regard.
It is important for the industry to be able to seek skills from a wide range of individuals so that no talent goes unnoticed. The industry also understands that DEI (Diversity, Equity, and Inclusion) is essential for performance and growth. Research has shown that diverse teams, where individuals feel comfortable expressing their opinions, promote innovation, enhance problem-solving skills, increase motivation, and demonstrate resilience to risks.
Unfortunately, concrete measures were lacking. That's why our members asked for help in promoting DEI in everyday practices. As a result, we created DEI guidelines for the industry, providing inspiration and assistance on how to approach DEI matters in internal operations, deal flow, and portfolio companies.
“However, the industry itself has expressed a desire for change, and the topic has been widely discussed. It is not desirable for an industry that is a forerunner in many other aspects to lag behind in this regard.”
What are some of the challenges the industry has faced in promoting diversity and inclusion? What role do you believe FVCA plays in fostering diversity and inclusion within the industry?
Of course, raising awareness and disseminating best practices takes time. DEI matters often end up on the desks of those who are interested in the subject or more broadly in ESG issues. However, in order to drive change, we need the willingness to act at all levels. It would benefit each and every one of us to become aware of the unconscious bias that plays a significant role in understanding and promoting DEI.
FVCA continues to work diligently on this issue. We know that guidelines alone are not enough. We need both increased awareness and concrete actions. Plans are underway for both of these aspects, and we will provide more details in the coming fall.
What is your message to students interested in the private equity industry?
The industry is truly interesting, captivating and worth boldly pursuing a career in. A good way to start is through internships during your studies and participating in industry events to network with different people. The industry is largely people-oriented, and individuals are genuinely warm and always willing to share more about the sector with students.
In addition to formal education, it is also beneficial to develop other personal skills. As your career progresses, networks play an increasingly significant role, so it is wise to start building them at a young age. Besides networking, social skills, in general, are surprisingly significant. Take the time to understand yourself in relation to these skills as well. Identify your strengths and areas for improvement. Also, always consider the kind of energy you bring to new encounters.
Another aspect to focus on is observing society on a broader scale. What are the major megatrends? What weak signals are in the air, and what kind of changes do these signals lead to in, for example, corporate operations?
A third aspect to develop, even during your studies, is communication skills. Surprisingly, many things – both successes and failures – boil down to communication. Therefore, it is worthwhile to invest in communication skills right from the start.
