The CEO of Finnish earnings-related pension provider Elo, Carl Pettersson, has pushed back against claims that the pension sector is failing to support domestic growth companies, highlighting the provider’s continued investment in the sector.

Writing in a blog post, Pettersson said Elo invested more than €100m in Finnish growth companies last year, with a significant share allocated through domestic private equity funds.

Over the past five years, Elo’s total investments to the sector amount to approximately €400m.

He added that, over the past decade, Elo has accounted for around 6 per cent of the capital raised by private equity funds in Finland, underlining the pension sector’s established role in supporting early-stage and scaling businesses.

However, Pettersson argued that pension fund capital alone cannot address the broader challenges facing growth companies.

He wrote: “Simply by injecting capital into Tesi (Finland’s state-owned investment company) or pressuring pension funds, we will not build the next Finnish success stories.

“Growth companies still need public funds and pension fund capital, as they do now, but we must bring in bold, profit-seeking private capital and knowledgeable owners who are willing to take risks and build companies for the long term. This is the starting point for growth.”

The comments come amid ongoing debate in Finland about the role of institutional investors in supporting domestic economic growth, particularly as companies face difficulties in accessing sufficient capital to scale and expand internationally.

Pettersson said difficulties in securing capital are holding back investment and limiting companies’ ability to expand internationally, but instead, they are seeking funding from abroad.

“When capital is scarce and moves slowly, the most promising companies seek opportunities in other countries, often on a permanent basis. We need more capital in Finland,” he said.

Alongside increased investment, he called for policy measures to improve the overall investment environment and attract international capital.

He emphasised the need for stability and predictability in policymaking, noting that “businesses and investors make long-term plans and investment decisions, which is why decision-making must also provide a clear outlook for the future”.

Pettersson also highlighted the importance of tax policy, arguing that future changes should focus on “a significant reduction in the overall tax rate” alongside greater consistency and reliability.

He further pointed to the need for a broader shift in attitudes towards risk-taking and ownership, stating that “we need a social ethos that both values ownership, success, and risk-taking, and encourages them”.

Pettersson added that a strong pension system and economic growth are closely linked, with both dependent on the availability of capital and the willingness of investors and entrepreneurs to support long-term growth.

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