Interview with Antti Uusitalo

Juha Kivistö

Could you tell us a little about yourself and your path to studying finance?

Sure! My journey toward studying finance began quite early. I grew up in an entrepreneurial family, which sparked my interest in applying to a School of Economics. I was exposed to and involved in business operations early on, which further fueled my curiosity. Additionally, I developed an interest in the stock market during high school, and by the time I reached upper secondary school, I had made my final decision to apply. 

I've always been passionate about football and played during upper secondary school, aiming to pursue it professionally. A significant portion of my daily routine was dedicated to training and living like a professional athlete. Despite that, I'm proud to have managed to perform relatively well in my matriculation exams and invest my time in my entrance exams.

For me, studying finance seemed like a natural choice early on, since my interests aligned so well with the topics. While I didn’t declare that finance would be my major before university, I had a strong inclination toward that path, even though I wasn't entirely sure where it would ultimately lead.

You started your career at the corporate finance boutique Summa Capital. How did that happen, and what led you to that decision?

During my studies, I had a couple of finance-related trainee positions. At the time, I was still deeply committed to football and training like a pro, which influenced my choices during my studies. The job market for trainee positions and working alongside studies was different back then. However, I performed well academically and began exploring my career options as I neared the end of my master's program. Many of the finance students spoke of investment banking, which might have influenced my decision to apply to the field. I worked hard to convince Summa Capital of my capabilities and eventually secured a position there. 

You spent eight years at Summa, during which you advanced to the position of partner. What was it like starting your career at Summa Capital? Was it challenging to take on a partner role only after 4 years, given the focus on acquiring and managing clients?

My start at Summa wasn’t too different from any other entry-level position in investment banking. The primary tasks involved valuation modeling in Excel and creating PowerPoint presentations. However, since Summa was a relatively small boutique firm, I had more opportunities to engage with clients directly. It was an excellent environment for learning and taking on responsibilities, and looking at where my colleagues from that time are now, it was definitely a great place to begin.

Summa also offered the chance to advance quickly. I made an effort to demonstrate my commitment and took on responsibilities to prove that I could be relied upon. Over time, this effort paid off, and I gradually progressed to the role of partner.

When it comes to the client side of being a partner, not everyone is natural with it. However, you could learn a great deal from more senior colleagues, both inside and outside the firm. While I wouldn’t call myself the world’s best salesperson, I learned to find and secure significant deals from the market and started to build my own client base. 

What were the main learning points from Summa?

Learning the business was crucial. As my first role in finance, I gained expertise in analytical tasks and the core substance of the work. The days were sometimes long, including some weekends, but I learned so much. I also got to meet and know the people in the industry and how to read the markets. These experiences have been invaluable in shaping my later career and have brought me to where I am today.

After eight years at Summa Capital, you moved to EY in 2015. What motivated that decision?

The move to EY gave me the opportunity to build something of my own. At the time, EY had very little visibility in transactions, which I found surprising. They were looking for someone to revitalize their corporate finance business in Finland. It was clear they were committed to this, offering resources and support to build a new team from scratch. They also gave me the autonomy to shape the team and influence recruitment, which allowed me to truly create something new.

What was it like transitioning from a small boutique to a large global firm? Were there any surprises or major changes, like more bureaucracy?

Of course, when you transition to a much larger global organization, hierarchy and bureaucracy inevitably increase due to the sheer size of the entity. EY's structure in Finland was similar in that regard. I believe anyone who works in a Big Four firm faces these challenges, but they’re understandable and often unavoidable given the scale of operations.

When I joined EY, I appreciated how the global strategy recognized the value of corporate finance advisory. The goal was to compete with boutiques and investment banks, and my role was to implement that strategy locally in Finland. EY's global reach, combined with its ability to leverage offices around the world, proved invaluable, particularly in sell-side transactions. In contrast, at boutiques, your resources can be as limited as your phone and Google search.

How did your work and the transactions change after moving to EY? Did the nature of your clients evolve?

The nature of the work remained fairly similar, and in some cases, transactions at Summa were even larger. However, when sourcing deals, you already have a significant client base. Almost every mid- to large-sized company is somehow connected to EY, which greatly impacts deal flow and creates exciting opportunities.

The fast growth of our advisory business changed my job. As we began handling more and more transactions, my role shifted more towards managing the growing team and dealing with operational matters. This shift gradually distanced me from the core deal-making I initially focused on. It also made me start considering whether I wanted to explore something new in the future.

This leads us to your move to Capman in 2020, shortly after the onset of the COVID-19 pandemic. What prompted the change, and how did the Capman Special Situations Fund come about?

There were a few reasons behind the move, and it took some time and reflection to embrace the idea fully. During my time as an advisor, I noticed that when companies faced "tougher" situations or wanted to sell "unwanted" assets, we often had to reach out to buyers in London, the U.S., or central Europe who specialized in turnaround cases. It felt like there was a gap in the market in Finland and the Nordics for handling these situations locally.

Another reason for the shift was my desire to do something new in private equity and create something of my own. Although advisory work was fulfilling, I realized that I had been working too hard for too long and needed a change. After some time off to reflect, I started discussions with Capman, and we found common ground. I also partnered with Tuomas Rinne and Jari Vikiö to bring this idea forward. We began planning in 2019 and quickly recognized the potential opportunity.

If you consider the world after the 2008 financial crisis, it was vastly different from today. We were in an era of cheap money, rising asset prices, and banks making profits from lending more and more. Simultaneously, regulation became stricter for banks. Before the crisis, banks were more involved in special situations and turnarounds, with in-house expertise to manage these challenges. Regulation changed this, and the banks’ role in turnarounds diminished, creating an opening for us.

Our fund’s thesis was based on this shift. We believed the world would return to a more “normal” state with rising interest rates, creating challenges for companies with significant debt. Additionally, banks would be less equipped to handle these situations due to regulatory constraints, and there were few investors ready to step in. We also anticipated more market disruptions, which the COVID-19 pandemic coincidentally confirmed.

We presented these ideas to investors and banks, who are crucial to our fund’s success. Given that our cases involve financially distressed companies in need of restructuring, we frequently deal with situations where companies are overleveraged or struggling with liquidity. Our goal is to find the best solution to resolve these issues, which often requires us to be hands-on and offer detailed plans for recovery.

Where are you currently with the fund? Do you think recent events have brought more opportunities to the table?

I would say things are going according to plan. So far, we’ve made four investments: Hoplop, Aro Systems, Marinetek, and Niemi Services. We’re also working on a few new platforms from the first fund. Additionally, we are working to create a new fund, aiming to build continuity. Of course, we still need to demonstrate good performance and show results from the first fund, but so far, so good. As mentioned, we don’t have a direct competitor, which presents unique opportunities. I’m pleased that we’ve been able to find interesting investment cases.

I do believe that turbulent times present more opportunities. For instance, the pandemic significantly impacted Hoplop’s operations due to restrictions. These kinds of events generate more deal flow and offer compelling cases, and we’ll likely see further opportunities as the effects of rising interest rates become more evident. That said, our investments don’t always require a major global event. Sometimes, poor management or bad decisions can steer a company in the wrong direction, creating opportunities for us to step in and help fix the business and its balance sheets.

That said, like everyone else, we’d prefer a more stable and predictable environment at some point. After all, we eventually need to develop our investments and make exits. Hopefully, we’ll see some economic growth soon, but right now, that seems difficult to envision. I also think we haven’t fully seen the extent of the economic turmoil yet.

The ESG trend has gained traction, but we’ve recently seen some setbacks. For instance, the Financial Times has published several articles on the fading of the ESG trend. Do you think ESG is fading, and how do you view it in your work?

From my perspective, and considering Capman’s stance, ESG is far from dead. In fact, Capman has invested heavily in ESG, including having a dedicated ESG team. Initially, the ESG trend was driven mainly by regulatory changes and mandatory reporting, which led some to see it as a "tick-the-box" exercise. However, it has since become standard practice for companies to incorporate ESG into their operations. For example, when we invest in a company, there’s always some form of ESG strategy involved. It’s an integral part of every business now, and I believe we’re moving towards a point where companies are actively seeking ways to create sustainable and profitable solutions rather than forcing it. Even though it might not be trending right now, it is here to stay. 

Let’s talk about your 10-year journey with IF Gnistan. What role have you played in the club’s remarkable promotion to Veikkausliiga?

My journey with Gnistan has been quite a story. I’ve always been passionate about football, but I grew up in Espoo and played for Honka until I was 16. After that, I transferred to Jokerit and in 2002 joined Gnistan in the Ykkönen, although the team was soon relegated to Kakkonen. It was a challenging time, as I was also studying or working, but I was able to maintain my player path and establish a connection with the team.

In 2013, the club saw a significant decline in support. By that time, I had been with the club for many years and had gained valuable experience in my professional life. When the opportunity to lead the club was offered to me, I knew it would be a challenging journey with no easy way out.

There’s been a lot of progress over the past decade. For example, in 2017 we were promoted back to Ykkönen, although we were relegated again the following season. But in 2018, we formally set a goal in our strategy to play in Veikkausliiga by 2024 – a target that has turned out to be spot on. The focus was always on genuinely improving the club.

In 2019, we established Gnistan ry to manage the club. Before that, I was managing the club largely on my own while also playing and handling a lot behind the scenes operations, which was overwhelming. Simultaneously, I was balancing work and celebrating the birth of my first child, which led to serious burnout and a break from work in 2019. The creation of Gnistan ry allowed for broader support for the club and helped ease some of the pressure. Additionally, we needed to find better ways to finance the club rather than relying on too few financing sources. 

At the same time, I changed a lot in my other parts of life. I changed jobs to free up more time for my family, friends, and myself. I ended my playing career and focused on building Gnistan so that I wouldn’t have to handle everything on my own. My goal was to make the club operate more independently, and while it’s taken some time, I feel we’ve now reached the point I envisioned during that transition.

And finally, what advice you would give to your 25-year-old self?

I’ve thought about whether I would do anything differently, but I wouldn’t say so. When you’re younger, it’s incredibly valuable to try new and different things. I see the younger generation doing just that – seeking out new experiences – and I think it’s beneficial for both personal and professional growth. It helps you navigate new situations. However, it’s also important to pursue things that you find interesting and enjoyable. And remember, life exists outside of work – so take care of yourself and maintain that balance.

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