Stockholm (HedgeNordic) – Finnish pension fund Varma has appointed Markus Aho as Head of Private Investments to replace Mikko Koivusalo, who will continue in a senior alternative investments role. Aho served as Varma’s Head of Private Equity and Infrastructure since mid-2016.
“The significance of private investments in Varma’s portfolio has grown year after year, and it is great for Varma that Markus is continuing Mikko’s groundbreaking work,” Varma’s Deputy CEO, Reima Rytsölä, comments on the transition. “I also believe that a controlled generational change in management will reinforce Varma’s positive employer image.” Mikko Koivusalo, previously the director of private investments, will serve as the director responsible for special projects and will continue as a member of Varma’s investment operations management team. Markus Aho and Mikko Koivusalo started their new roles on January 1.
“The significance of private investments in Varma’s portfolio has grown year after year, and it is great for Varma that Markus is continuing Mikko’s groundbreaking work.”
“After nearly 25 years in this position, I am happy to pass the baton to Markus, who has a very successful track record in private equity and infrastructure investments and has demonstrated good leadership,” comments Koivusalo. “Alternative investments have a long horizon, and I am also pleased to be part of the transfer of responsibility and the investment portfolio’s further development.”
“I am pleased to have the opportunity to continue working with private investments in this new role and with a familiar and experienced team,” says Mikko Koivusalo, Varma’s new Head of Private Investments. “Due to the long-term nature of private investments and the importance of partnerships, an organisation must have the capacity for renewal and show vigilance, perseverance and experience.”
“I am pleased to have the opportunity to continue working with private investments in this new role and with a familiar and experienced team.”
The market value of Varma’s investments reached €56.6 billion at the end of September last year, with €8.08 billion allocated to private equity, €3.04 billion to direct real estate and €9.09 billion to hedge funds. The return on Varma’s investments during the first nine months of 2021 reached 13.5 percent to add €6.7 billion in asset gains. The value of its investment portfolio grew to €56.6 billion at the end of September from €48.1 billion at the end of last year. Varma’s investments in private equity generated the highest returns at 39.9 percent, followed by listed equities at 17.6 percent and hedge funds at 11.6 percent. The return on real estate investments amounted to 4.1 percent.
