Interview with Lauri Vaittinen

Henrik Liimatainen

Could you please tell us a little bit about yourself and how you ended up in the School of Business?

I’m originally from the Helsinki capital area and started my studies at Aalto University School of Business back in 1997. When deciding on what to study after high school I had three options: business, law and engineering. I had a strong interest in natural sciences like mathematics and physics already during high school, so in the end, it was easy to rule out law school. I eventually did some engineering studies at Aalto (then TKK) as well, but I quite quickly understood that studying business and finance was my cup of tea.

I proceeded very fast in my studies and graduated after actively studying only for about 2,5 years. One reason for this was that once it started to look like the tech boom was about to burst and the economy was starting to cool down, I figured it would make sense to enter the job market as quickly as I can before it saturates. 

Why did you choose to study finance? 

I guess it originated from both my mathematical background and strong passion for investing. Furthermore, I am very competitive and saw finance as a challenge adequate enough to match my level of ambition. Moreover, it must be said that the tech boom and the general spirit of the late ’90s elevated the prestige of both finance studies and the subject club KY Finance. 

At the time, consulting firms and investment banks started to become a lot more interested in finance students and arranged exclusive excursions for them. The firms invested a lot of resources in cottage trips and other events, which was obviously very impressive from the students’ point of view.

What are your fondest memories from university?

I warmly reminisce all the fun skiing trips like Hupellus, Kaamos and Alppireissu. Also, one individual event is still fresh in my memory. British-American Tobacco held an event for top students where they had Nylon Beat throw a private gig for us. Before the show, one of the executives of the company gave a keynote speech with a cigarette in his mouth. A fun memory, but gladly times have changed.

At the beginning of your career you spent 8,5 years as a Portfolio Analyst & Manager at Pohjola Bank – how did you end up on that path and looking back, how do you reflect on that time now?

At the time of my graduation, there were two clear career paths that finance students were taking. The first one was consulting and corporate finance and the second one was asset management and markets. During that time, asset management was not seen as a strong business for banks; people were more into brokerage services and saw that as a way to make money. 

Nevertheless, I was really into working in asset management and wanted to get into that field. At the time, international asset management did not seem that approachable and people going to London were interested either in M&A or Sales roles. That’s why I had my scope on the Finnish job market and ended up working for Pohjola Bank, one of the three main players of the Finnish asset management business at that time. Back then there was actually a niche industry of hedge funds in Finland, and I worked a lot on that side.

Of course in my current role I could benefit if I had worked with private equity and other non-listed investments early in my career but looking back on it, I have no regrets since I very much enjoyed the quantitative nature of asset management.

You also spent 5 years working at Etera. How did you find the leap to a pension fund and what is your current take on the Finnish pension system?

The work at Etera was very different compared to Pohjola: the pension fund was almost bankrupt after the financial crisis. Working there was a great crash course to the Finnish pension system and it was great to learn how to restructure a troubled business. My quantitative skills were a great asset in understanding how the Finnish pension system works, but the biggest learning was probably related to seeing the customer side of asset management. Especially with pension funds, it is not only risk/return optimization, but the liabilities side is very much driving decisions.

My take on the Finnish pension system is simple: achieving the desired rate of return is going to be extremely difficult under the current circumstances. Firstly, the pension funds cannot invest everything in stocks, and the scarcity of suitable investments is evident. Compensating the challenges on the investment side would require a stable birth rate and suitable economic circumstances, allowing salaries to grow. All in all, the economic competitiveness of Finland is super important. In conclusion, an optimal scenario is required for the pension funds to achieve their future targets.

Mandatum has been your employer for the past 7 years. What attracted you to the company in the first place, and how has the company evolved after the introduction of Mandatum Asset Management in 2021?

Sampo Group, the owner of Mandatum, seemed like a very prestigious employer which made me interested in the position in the first place. Furthermore, Mandatum was basically built from 0 after the commercial banking side was sold to Danske Bank, and I was avid to join the growth story. The growth has been amazing: nowadays Mandatum is #1 in Finland in debt alternatives and top-3 in real estate and private equity investments. Being part of the growth story has been fascinating, and introducing Mandatum Asset Management has been the most recent exciting chapter.

In your current role as the CEO of Mandatum Asset Management, you are in charge of €24 bn AUM. What are the most rewarding and challenging things in your job?

In my current role, I have drifted more from the investing side to leading an asset management business. Interestingly, there are in fact very few people that are able to lead an asset management business. This is because while asset management professionals are strong experts in their field, they perhaps lack an interest in broader business management topics. 

All in all, the combination of being part of a great growth story and being able to lead an asset management business is definitely the most rewarding part of my job. The challenge is related to building a stable business that is able to understand trends and grow over cycles. This is not an easy task since the financial sector is very cyclical. Nevertheless, I’m very confident that we at Mandatum are ready to continue our successful growth journey since we have a very competent team of professionals.

What is your take on crypto investing?

I think that as long as cryptos do not have a clear status in the financial markets, it feels difficult to understand their future. Although I like the underlying technology and can believe in its potential, I’m a bit unsure about how cryptos can preserve their value over the cycle. Furthermore, there might be a tipping point when assets start to flow from traditional classes to cryptos. When we reach that point the regulators must act, and it is very hard to predict the outcome.

What do you enjoy doing during your free time?

I enjoy sailing which I have been doing actively for 20 years. In addition to that, winter sports like downhill skiing are close to my heart.

What would be your career advice for a 25-year-old Lauri?

I would say that it's important to broaden your perspective and avoid ending up with a narrow world view. It is genuinely important to have the patience to work on many different things when you are young since a career spans over many decades. Furthermore, if I was 25 now, I might be looking more into the technology side of things in finance.


Henrik Liimatainen is a former Editor-in-Chief of AFA Quarterly.