Interview with Jani Nokkanen

Juha Kivistö

Could you tell us about your background and how did you end up studying finance?

Yes, certainly. I come from Kuusankoski, which is now part of the city of Kouvola. I grew up in the lower-middle class and didn’t receive much guidance on choosing a profession after high school. I thought being a local bank manager would be a nice and cool job, so I applied to the Helsinki School of Economics, majoring in finance. Overall, I wasn't sure about my career goals, but I knew I wanted to do something business-related with exciting challenges, which led me to choose finance. It was also the hardest major to get into and it was highly valued, which might have had little influence on my decision as a young student.

I didn't have a clear plan when making these decisions, but I was determined to achieve something, pushing me to choose the most challenging school and major. If I could change something about my decision-making process, I would have taken more time to think about my goals and create a broader plan. Nevertheless, my decisions turned out to be pretty good for me. 

Aside from school, I secured a couple of internships. I worked at JP Capital International in London, which, coincidentally, opened another opportunity at the Nordic Adviser Group (NAG). Following these experiences, I still had the desire to work at a major investment bank in London. Fortunately, I got the chance to intern at JP Morgan. Again, there wasn't a grand plan to land an internship at JP Morgan, but somehow, my decisions with the initial internships contributed to this opportunity.

After all this, I took a moment to reflect on what I wanted to do after my studies in 2003. I had come a long way from Kuusankoski to becoming an investment banker in London. Realizing investment banking wasn't my passion, and with my girlfriend, now wife, in Finland, I decided to choose the best path for me—staying in Finland and pursuing a career in consulting at BCG.

You already had quite interesting opportunities to decide what you wanted to do. Why did you choose consulting, in particular, and what did you learn in this time?

Since I wanted to stay in Finland, it was clear to me that I wanted to join an international world-class consulting firm. The first years of a career are crucial because, whether you want it or not, you start leaning towards specific types of jobs and industries right from the beginning. Consulting and investment banking are great places to learn and get used to the work pace. They aren't shortcuts for your life, but they can be seen as a "quality stamp," and allow you to develop a wide range of skills. Especially, problem-solving and structuring are significantly beneficial tools that you acquire. Additionally, accuracy and strategic thinking are qualities from which you will benefit in every position you pursue. 

I would like to remind the younger alumni that consulting isn’t a free ticket to any position you want, which can be forgotten every now and then. It does keep your options relatively open, but it won’t guarantee any position you desire. However, starting a career in consulting is still a great choice, as it provides the benefits mentioned previously and allows you to learn rapidly from the beginning of your career. It's sometimes even amusing to see the situations and projects you get to handle right from university. The projects may be challenging, but they make you work hard and develop yourself, making the job extremely interesting.

You spent some time in New York during your time at BCG. What was it like there and what were the main differences compared to Finland?

It was a relatively small change in terms of how the projects were managed and what we got to do in them. Of course, the deals were significantly larger, so it was kind of a transfer from Liiga to NHL. Additionally, we had larger teams, organization, and you didn’t know everybody, which is something you probably expect.

Surprisingly, the skill level in New York wasn’t any higher than in Helsinki. I think that since there are many more high-quality firms in New York, there weren’t enough highly educated people to fill those positions. The situation was the opposite in Helsinki, where the skill level sometimes proved to be even higher than in New York in certain firms. Of course, this was the situation 20 years ago, but it highlighted the high level of professionals we have here in Finland. 

I had really high expectations when I transferred but soon realized that people from Finland, such as Tuukka Seppä, are comparable to those guys. Overall, it was a great experience, and I would recommend it if you have the chance to go. The main advice would be not to stress about your competence to perform there. 

Next, after spending 5 years in consulting, you made the decision to jump into NREP. How did you end up there and what was it like to change BCG to a much smaller company and a different industry?

I bumped into a friend of mine who was a student at Harvard Business School at the same time as the founders of NREP. They were searching for people for their project, and since they couldn’t afford a headhunter at that time, I received a recommendation from my friend and decided to seize the opportunity. Additionally, I had a growing interest in the PE industry, which was challenging to break into, especially in Finland. Furthermore, I didn’t want to start at the entry-level position at that point in my career, and there were only a few positions available in the middle management.

NREP was built on the idea that international investors could invest in the Nordic real estate market. The idea also included the necessity of local offices, as the real estate industry is local, and you have to know the target market. I was part of the team in Finland, and my first position was investment manager, and my first project was Pelican Self Storage. I wasn’t too familiar with the industry either, and my initial thoughts about the project were questioning why anyone would rent a place just to store their belongings at such a high price per square meter. However, I quickly realized the selling point wasn’t the floor space but that it would solve someone’s actual problem. This is at the heart of NREP, where we aim to solve our customers' problems, which holds the value of our business. 

The biggest change compared to consulting was the slower pace, since real estate is highly regulated, and the processes are saturated with approvals of the authorities. In contrast, in BCG everything was moving all the time, so it truly was a big change. It took some time to adjust to the new industry and learn all the processes, but it was a great learning opportunity.

You have already a long career in NREP. What have been the main reasons you have wanted to stay for so long in the company?

It's hard to pinpoint one or two things, but overall, the journey and the remarkable vision of NREP have been the foundation for my extended stay. The experience has been rewarding, with diverse positions and responsibilities that have kept the job interesting. 

I joined in 2008, right after the financial crisis, which wasn't the best timing. However, we quickly began offering different investment solutions for investors, and a London hedge fund actually invested in the self-storage project. I started in a role involving groundwork and the search for potential storage locations. It provided an opportunity to learn and witness the execution of such large transactions. Additionally, I was involved in building the organization around these operations. Subsequently, I explored other segments, developed broader plans, and established our transaction team in Finland.

It was motivating to observe our success and profitability even during and after the financial crisis, contributing to our growth and attracting more investment. In 2014, we secured our first larger fund of 400 million euros. Simultaneously, I was promoted to fund manager, overseeing all our Nordic investments. Our growth was rapid, raising funds of 600 million and 900 million euros in 2016 and 2018, respectively. This led to increased responsibilities, and I began leading our transaction team as well. Later, we raised funds of 1.8 billion and 3.65 billion euros, the latter being the largest real estate fund ever raised in Europe. It is amazing to think back that NREP was founded in 2005 out of nowhere and then managed to get some London hedge fund to invest in us for some reason which ignited the whole journey. 

What is your position nowadays?

My position has changed a lot during these 16 years. I started as a developer handling transactions, but with more experience, my role has shifted towards general and stakeholder management. In more detail, I engage in a lot of sparring and mentoring, aiming to help others succeed. As you take on a more senior role, managing everything becomes challenging, so the logical approach is to assist others in performing at their best. The second aspect of my job involves fundraising and investor relations. While I would love to be more involved in transactions and deals, it isn't realistic. These types of job descriptions become more typical as you advance in the industry. My official title is Chief Investment Officer (CIO), which is often confused with Chief Information Officer, and I get every now and then people offering some kind of IT services for me. However, my main operational duties consist of creating and making our investment strategy and leading the investment committee. 

What makes NREP special in your eyes?

NREP is part of Urban Partners, which includes venture capital firm 2150, Velo Capital, and Luma Equity. All these arms share the vision of making the world a better place. At NREP, we are a purpose-driven organization, aiming to make an impact with our investments. It's hard to see, for example, that the climate crisis can be solely solved by regulation. It will need private money and ventures, which will find ways to solve our problems and change the system. While NREP won't solve these problems alone, it can lead the change. We are starting to gain the power to make real changes, such as demanding the construction firms to operate sustainably. 

This vision also makes us more attractive to employees and other stakeholders compared to other real estate funds. We may not have more brain power or work longer hours than people in London, but we are still one of the best fund managers in Europe. Doing good is a good business model, and it's one reason why we outperform our peers. Additionally, the capital markets and people are changing, gravitating towards companies that are trying to make an impact. People want to feel that their work is making a positive impact. This is the main reason why I have stayed so long in NREP and continue working towards its vision. 

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

I would give this advice even earlier, but you should at some point stop to think why you are working and towards what. Many young students start working in MBB or investment banking without thinking what the opportunity cost of it is. At some point, you should stop to think about the real reasons why you are in your job and what you would want from your life. Pursuing a career in these industries isn’t a wrong decision, and, for example, I wouldn’t change my career path too much. Still, nobody will say on their deathbed that “why didn’t I work more” or think that “my life goal is to maximize the shareholders value”. I had an inaccurate perspective on my reasons back then and woke up late to these thoughts. Thus, I would recommend to my younger self introspection and seeking mentoring to define my goals. I don’t aim to stress students that they should know what they want to do right after school. However, I want to encourage students to think more about their own ambitions, not just follow a track they've heard is great. 


Juha Kivistö is the previous Editor-in-Chief of AFA Quarterly.