Hannes Kulvik
| Hannes Kulvik | |
|---|---|
| Born | 26 June 1948 Oulu, Finland |
| 🏫 Education | Ph.D in Engineering |
| 🎓 Alma mater | Helsinki University of Technology |
| 💼 Occupation | |
| Title | Chairman of the Investment Committee, Sifter Capital |
| Board member of | Sifter Capital (2015-2023) Sifter Fund Global (2003-2021) Spontel (1984-1987) |
| 👩 Spouse(s) | Marja-Leena Kulvik |
| 👶 Children | Henri Kulvik Janne Kulvik Noora Kulvik |
Hannes Kulvik (born June 26, 1948[1]) is the founder of the Sifter Fund, a Ph.D. in engineering, and former CEO of Sponsor. He has worked in the finance industry, corporate development, and financing for over 35 years. He was among the first to establish private equity operations in Finland. In addition, Kulvik has served on the boards of listed companies and acted as an advisor to President Martti Ahtisaari.[2]
Education
Hannes Kulvik graduated from high school in 1967. After completing high school, Kulvik studied industrial management at the Helsinki University of Technology and graduated as a Master of Science in Engineering in 1971. He continued his studies while working and completed his licentiate thesis and doctoral dissertation, earning his Ph.D. in engineering in 1975.[3] Kulvik was actively involved in student activities and served as the chairman of the Prodeko Guild of Industrial Management in 1968.[3]
Career
Early years
Kulvik started his professional career at Valmet in 1972. When Valmet's CEO Jaakko Ihamuotila wanted to increase the company's exports, Kulvik proposed supplying complete factories to developing countries. Ihamuotia liked Kulvik and his idea, which led to the establishment of the Technology Transfer Group, a unit focusing on technology exports, with Kulvik appointed as its director in 1976.[4]
Sponsor
As the Director of the Finnish Innovation Fund Sitra and Kulvik's doctoral supervisor, Professor Carl Erik Carlson hired Kulvik as the CEO of Sponsor after Klaus Waris in 1981.[5] When Kulvik took the helm at Sponsor, he redefined the company's strategy in collaboration with Carlson. From then on, Sponsor would focus on acquiring large and strong companies as permanent investments, rather than selling them.[5] According to Björn Wahlroos in his memoirs, Kulvik, with the support of Chairman Carl Erik Carlson, began to reform Sponsor. Waris's idealism was replaced by the maximization of shareholder value and aggressive management incentive programs. [6] In today's terms, the company was established as a nonprofit venture capital investor, but according to Wahlroos, it didn't quite succeed in making money in Finland at that time.[6]
Spontel
In 1983, Hannes Kulvik, Mikael von Frenckell, and Jan Boethius jointly founded the investment company Spontel. Spontel was established as a subsidiary of Sponsor. The company was listed on the Helsinki Stock Exchange in 1985. The purpose of Spontel was to strengthen the power of anchor owners with minimal investments through the cross-ownership between Sponsor and Spontel.[7] Additionally, Spontel offered Sponsor the opportunity for faster and higher-risk investments. Following a dispute between Spontel's Chairman of the Board Hannes Kulvik and CEO Jan Boethius, a power struggle took place in 1987, resulting in the dissolution of cross-ownership and the appointment of Björn Wahlroos as the Chairman of Spontel's Board.[8]
Kouri Deals
In the 1980s, Kulvik also participated in the so-called "Kouri Deals". He owned a portion of the shares of Yhdyspankki (United Bank of Finland) .[9] The Finnish tax authorities deemed that Kulvik had benefited from the "Kouri Deals" and imposed over 250 million Finnish marks in back taxes. During the legal process, the tax authorities seized Kulvik's income and assets.
In 1991, Kulvik was forced to resign from his position as CEO of Sponsor because he had not disclosed the beneficiaries of the "Kouri Deals", citing Swiss banking secrecy. [10] Since 1992, Kulvik has been residing in Geneva.
From Switzerland, Kulvik pursued legal action against the tax authorities. The legal process lasted for eight years. In June 1998, Kulvik was acquitted of all tax claims by the Uusimaa Regional Court. The Supreme Administrative Court also definitively dismissed all the tax authorities' demands and ordered compensation of 100,000 Finnish marks for Kulvik's legal expenses.[11]
As an Investor
In the early 1990s, Kulvik had accumulated personal wealth through his career and business ventures. In 1991, together with his wife Marja-Leena Kulvik, he established the investment company Kulvik & Cie to manage his assets.[12] In 2003, Kulvik founded the Sifter Fund in Luxembourg, with portfolio management taking place in his hometown of Geneva, Switzerland.[13][14] In 2015, the portfolio analysis work was transferred to Sifter Capital in Finland.[14][15] Currently, Kulvik serves as the Chairman of the Investment Committee and a board member of Sifter Capital.[2]
Other
In his memoirs, Wahlroos paints a picture of Kulvik: He was an intelligent, analytical, and ruthless negotiator who skillfully exploited the weaknesses of the other party. In negotiations, he had a unique ability to swiftly shift the atmosphere from jovial small talk to tense pressure. The problem was that intermediate states were difficult for him – he lacked both charisma and empathy, which made it challenging for him to lead people. Therefore, as a business executive, he was not as overwhelmingly successful as he was as a negotiator.[16]
Criticism
In April 2016, the Finnish Broadcasting Company brought to light information from the Panama Papers, suggesting that Kulvik had established companies in tax havens through the law firm Mossack Fonseca in the 2000s. At the time of the program's release, some of the companies may still have been in operation, while others were presumably dissolved or changed their names. The information was based on correspondence investigated by the program between Kulvik's Swiss-based company and Mossack Fonseca.[17]
References
- Puustinen, Terho:The Investor: How Hannes Kulvik built the 'Nordic Value Investing' model and why staying humble can grow your wealth in a restless market. (Sifter, 2022) ISBN 978-952-94-7050-1 Search this book on
. - Wahlroos, Björn: Barrikaadeilta pankkimaailmaan (Otava, 2021) ISBN 978-951-1-41751-4 Search this book on .
- ↑ Wahlroos p. 375
- ↑ 2.0 2.1 "The Sifter team". Sifter Capital. Retrieved 2023-06-15.
- ↑ 3.0 3.1 Puustinen p.33
- ↑ Puustinen p.35
- ↑ 5.0 5.1 Puustinen p.37-38
- ↑ 6.0 6.1 Wahlroos s.134-135
- ↑ Vihol, Teppo (2000). Rahan ohjaaja. Yhdyspankki ja Merita 1950-200. Jyväskylä: Merita Pankki Oyj Otava. p. 297-300. ISBN 951-889-103-6. Search this book on
- ↑ Puustinen p.36-53
- ↑ Wahlroos p.213
- ↑ Puustinen s.109
- ↑ "Kulvik voitti veroriidan". mtv.fi. 1999-05-19. Retrieved 2023-06-15.
- ↑ Puustinen p.111-112
- ↑ Puustinen p.123
- ↑ 14.0 14.1 "A revolutionary idea". Sifter Capital. Retrieved 2023-06-15.
- ↑ Puustinen p.151-152
- ↑ Wahlroos p.134
- ↑ Kerkkänen, Tuomas; Lindroos, Kjell (2016-04-12). "Panama-paperit: Kouri-kaupoista tunnetulla Hannes Kulvikilla useita yhtiöitä veroparatiiseissa". Yle. Retrieved 2023-06-15.
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