Helsinki

Sonnet sits in front of our hotel, The Kamp. It's a nice getaway while the kids are with Aggie for the night. The last time we snuck away was Berlin which was equally fun. As you may know, Helsinki is the capital and largest city of Finland. It is in the southern part of Finland, on the shore of the Gulf of Finland, by the Baltic Sea, where Sonnet and I went last night on a car ferry. The population is 568,146 from October, making it the most populous municipality in Finland by a wide margin. The metropolitan area generates approximately one third of the Finnish GDP and is roughly 1.5 times the national average, making Helsinki one of the wealthiest capitals in Europe.

Kamp

Helsinki, for work.  Mikko and I have drinks at Hotel Kämp and, I learn, he and his girlfriend have bought a house.  Usually, as in usually in the UK or the US, one might get married first but "it is perfectly normal" in Finland for couples to extend their relationship into financial obligations before they tie the knot.  It is one of the many things I love about here : despite being a tiny inter-linked community there are freedoms quite different from elsewhere. It is also impossible to get decaffeinated coffee.

Mikko and the city a-buzzing about the Guggenheim's recent decision to build a museum on the Helsinki waterfront (estimated cost: €140M).  The city chosen for its tradition in art and design and its plans to develop the harbour properties. Otherwise, surprisingly, Helsinki lacks a significant modern art collection. The architect has yet to be chosen but I vote for Renzo Piano. 

Summertime - Dirty Banks - Madeleine Quotes

Photo from about this time of year, 2004, in Richmond Park.

The school has their sports day (Madeleine explains) " there are color teams, and each team has to sprint and do obstacles and stuff.  Long jump, vortex, and stuff like that.  In the end, the team with the most points, for individual races, wins.   The color teams are red, green blue and yellow, for years three, four, five and six."

By happy coincidence Eitan and Madeleine on the red team, which was last one year ago but first today (Eitan co-captain).  Madeleine and Eitan contribute with wins in the "long distance" or six laps around the school's grass fields.  Afterwards Sonnet rewards the kiddies with a treat at The Victoria.

Barclays fined £290 million for manipulating libor (the London inter-bank borrowing rate) for years including the financial crisis when banks almost burned the house down (dirtbag traders - we've seen them at Enron. We know them from Wall St).  But why stop there ? The FSA also announces this week that the same banks have mis-sold complex derivatives to SMEs. The prospect of a Levenson-like inquiry floated in the commons; a criminal investigation proceeds.  And one must ask : how did we get here ?

Madeleine raises her hand at the dinner table: "I have a random fact."
Me: "Oh?"
Madeleine: "Do you know why they call the Oscar "Oscar"? "
Me: "No."
Madeleine: "Because the person who made the trophy thought that it looked like her Uncle Oscar."
Eitan: "That's not so."
Madeleine: "Is so. I read it in a book. At school."
Me: "Thank you Madeleine, it makes sense to me."

Kamila: "What's the capital of Germany?"
Madeleine: "Helsinki?"
Me:
Madeleine: "No, wait, it's Switzerland . .."
Me: "That's it. Atlas. Now."

Later, me: "Madeleine, where is Helsinki please?"

Madeleine: "I can never remember that one .. ."

Me: "You have to know the capitals kiddo."

Madeleine: "Oh, wait, once you gave me a postcard from Helsinki and it said 'Finland' on the back. It's Finland!"

Me: "Excellent, nice work."

Madeleine: "Thank goodness for my memory."

Helsinki Bay

I am in cool Helsinki, arriving yesterday from Munich. 

Helsinki is becoming a favorite destination and I meet with a group of Finns who want money to invest in Russia and Eastern Europe. I learn about this region (there have been three wars between the states in modern times - but the young carry no baggage) and consider the private equity opportunities. 

I do recall that last year the Kremlin repatriated (stole) ownership of Royal Dutch Shell's Sakhalin-2 project following years of Western investment; today it is announced that the TNK-BP joint venture is under pressure as Board members denied visas. Not very subtle dude. Political risk to be weighted against today's energy pricing which converts Russia's resources to the high street: consumerism thrives and Russia retakes its place in the world - all very visible at the G8 (at least Bush does not have a cute nick name for Medvedev- remember Putey-Poot? - November cannot come fast enough, oh brother). 

Interestingly the majority of foreign, private capital into Russia arrived in the early 1990s from Americans - including foundations and endowments - to stamp out Communism for good. These funds disappeared forever in the 1997-98 Russian crisis. 

Now the Russians lecture America on its busted domestic policies that destabilise the world. Sigh. This evening I am greeted by the kids loud bath tub squeals and their demand for presents. Good to be home (photo from WWW).

Finn

I return from Finland yesterday (in unison: "Dad, did you get me a present?") where I have a meeting and some free time. It sprinkled snow and the Finns worry about the winter (Finland is equally effected by changes in the jet stream, which keep the UK warm and moist). This is my third time to Helsinki in '08 which is no bother. The city's architecture is famous for its Art Nouveau from the early 1900s and more recently Alvar Aalto's "functionalism." Helsinki is often used as a Hollywood backdrop for the Soviet Union in many Cold War Hollywood movies like Reds and Gorky Park. The Finnish government, I'm told, secretly briefed its white-collar workers to make producing these, often clearly Soviet-negative, films in Helsinki as hard as possible due to diplomatic pressure from Moscow !

What's the most important thing in the world (asked over cereal)?
Eitan: My match attacks, Pokoman cards, Teddy and family
Madeleine: Family and doggy

Manchester United is eliminated from the FA Cup by Portsmouth. Eitan sheds a tear of frustration, becoming further irritated when I mention it is only a game.

Jasper

Here is Jasper, another long-time Berkeley friend dating to at least seventh grade when he was adored by King Jr High's tweenie crowd for good reason.

So, let's see- after returning to the UK Monday, Sonnet and I caught Feist at the Shepards Bush Empire. Her voice grainy and memorable, hitting high octives easily while her songs tell interesting stories. I was pretty knocked out from the flight but we had a fun catching up date. The next morning I fly to Geneva and then Helsinki where the bulk of my week has been with investors for my French fund Astorg Partners.

In Geneva with several free hours, I visit Piscine des Vernets where I swam with Geneve Natation 1885 during my exchange year in 1983/84. It was a trippy experience - nothing has changed and the lighting and mood brought back old memories of what was, I now appreciate, a hard 16th year away from home which nonetheless I was fortunate to have. My exhaustion eventually catches up to me and the Hotel Kamp in Helsinki fails to honour my wake-up call as I rise, dazed and confused, at 10:50AM. Shit! Missing one meeting already, I blast out the door for the next (the Kamp, the best hotel in Finland according to Conde Naste, comps my room those bastards).

Thank goodness I am now at home - yesterday evening Eitan and Madeleine look up from the cartoons as I walk in the door - just for an instant- and give me their big smiles. What a good life.

Helsinki

I start today with a run along the Gulf of Finland by the Baltic Sea. Afterwards, I learn that Helsinki's early settlement in 1550 survived plagues, wars and poverty while overshadowed by its Baltic trading neighbors. It was not until Russia defeated Sweden in the 1809 Finnish War annexing Finland that the city began to prosper. Russia's influence remained strong and the city was eventually controlled by the Red Guard following the 1918 Civil War (German troops helped expel them). In WWII, aerial bombings of the Winter War (1939-40) and the Continuation War (1941-44) brought the Soviets who, at their worst in 1944, dropped some 16,000 bombs in and around the city. This trip I stay at the Hotel Kamp in the center of town.

Wonderful Copenhagen

A Dane on display

This is what everybody looks like in Cophenhagen (where I blog, awaiting a flight to Helsinki). And I think it is true. Or maybe it is the surprise of seeing so many young people in the cafes, on bikes, walking in the park.

Following lunch I go for a seven mile run around 'the lakes', a row of three rectangular lakes curving around the western margin of the City Centre, forming one of the oldest and most distinctive features of the city's topography. I have done this loop many times now. What is different: construction. There is a new, narrow, walkway and (soon) public area.  The students, strollers and sunshine seekers remain unchanged.

Mask

Madeleine and I end our afternoon together. Today I am off to Helsinki for work, returning tomorrow. Yesterday Gordon Brown became leader of the Labour Party and will succeed Tony Blair as Prime Minister on Wednesday following a wait of ten years. There is speculation that he will hold a national election within twelve months to secure his base which has steadily declined following Iraq and the various scandals dogging Tony. Wimbledon begins today - it rains (of course).

Design

Sonnet and I visit two in one morning: Helsinki's Architectural Museum and the National Museum of Design (fish, pictured). At the first, we see buildings in the Eastern Bloc where investors demand a new asthetic and certain areas are prone to Euro chic - notably Poland and Lithuania, the home of many new, young and good looking architects... or are they artists? or cigarette smoking models dressed in black turtle necks with matching spectacles? Well, in any way, they make nice structures which are curvy and stylish, often shaped to their surroundings and always with glass exposures for us to see in, and them to see out. Afterwards, we stroll the high streets and marvel at the cool shops, which sell a bit of home ware, some kitchen fixtures and a sample of clothing all-in-one. Most have a burning candle on their entrance door step - a nice touch, especially on a cold day like now, with a dusting of white snow to make it cozy.

Finland

Photograph, uncredited, of girl and submarine on one of the many small islands in the Bay of Finland neighboring Helsinki where I am Monday night. I have been fortunate to know this city on five or six occasions these last four years and every time I visit I am taken by its charms. There remains a strong Russian or Soviet influence in the architecture and the buildings box-like and strong with differing drab colours in the city center where I stay at The Kamp. The bay is completely frozen and the two towering pleasure ships must be tugged to port behind ice-crushers. Otherwise the docks, which bustle in the spring and summer, deserted. Overlooking everything is the glorious, Finnish Russian Orthodox Church with its roots in the medieval Novgorodian missionary work.

Reuters reports that one in five US mortgages underwater with the sun-states off by 50% in over-built areas. In the UK housing prices down but no where near reflective of the correction taking place in public or private markets. I see this in private equity where funds, by design, meant to suffer recessions by investing and reap rewards during good times - this why they are ten-year vehicles. Inside the portfolios, however, one can see the growing destruction wrought by leverage which may wipe out a class of vintage years. Today now there is grumbling about bank covenants being breached and in some cases like Candover Partners, one of the UK's largest buy-out funds, the closure of business - Candover bailing out of its recent €5 billion fifth fund. Even the secondary market is dead - when you don't know the bottom, you don't buy the assets. All this may suggest that we have pain to suffer, which has not yet passed along to the single-biggest household asset - property. While the decline is ongoing and bloody in the US, London still feels rather content with the run-ups since '95 and unwilling to depart with its "fair value." As the recession bites deeper, this will change I fear and once gone - confidence with it.

Madeleine and I play a game of tag-your-it on the playground before school. Eitan has trials for the Richmond Borough Swimming Gala this afternoon, which I will watch from the stands. 45 schools compete and Eitan has been selected, after a school competition, to represent us.

Front Tooth

Eitan has a wobbly - pictured. The boy will not be outdone by his little sister, who lost her second front tooth this weekend. Sonnet and I catch a morning flight to Helsinki, where we stay at The Kamp, a fancy hotel in the center of the city and not far from the Gulf of Finland. In fact, we take a late-evening ferry to one of the many islands and sit outside to watch snow-fall before returning to the hotel for dinner. Despite the dark (sunset around 3PM), the city is alight with candles and Christmas celebrating their good cheer. Our proximity to Russia and its history manifests itself in the dialects and the orthodox church, which towers over us from the tallest point in town. Sonnet and I plan to rise early for museums and etc. before she returns to London and I get to work. The kids are dee-lighted to have Aggie for the night in one big, happy sleep-over. Are we missed by them? Nah.

Bay Area Morning

I am behind on my weblog following a week in California. Bare with me. My photo of the Bay Area taken from Panaramic Rd in the North Berkeley Hills behind Memorial football stadium. The Golden Gate visible to the immediate left of the tree. I arrive SFO Monday afternoon and up the following morning 4AM. Rather then lay in bed and fight my demons, I pinch my dad's tri-pod and quietly let myself out the front door. This the dead-zone: the only movement a lone, empty bus (the No. 65 which used to be the No. 7 in my day) which cruises up Euclid Avenue. I pass the Cal dorms, Top Dog (a Berkeley fixture since '66), a sciences building and the business school - all locked down. I brought Sonnet to Panaramic during our early courtship and she recalls the night - like now, it was unusually warm and the view unchanged. I make my phone calls and consider the strangeness of looking at this while talking to Helsinki or London. Not possible fifteen years ago.

We have a proper family re-union dinner as Katie in Palo Alto where she signs a partnership with Stanford University. They will provide editorial training for women and minorities.

According to the San Fran Chronicle, the San Francisco Bay Area is one of the wealthiest regions in the U.S thanks to the economic power engines of San Francisco and San Jose. The Bay Area has approximately 123,621 millionaire households. Among medium-sized cities, Pleasanton has the highest household income in the country, and Livermore the third highest. 48% of the Bay's households have annual incomes >$75,000 vs. 26% for the nation. The percentage of households with incomes above $100,000 was double the nationwide percentage. Roughly one third of households had a six figure income, versus less than 16% at the nationwide level.

In June 2003, a study by Stanford University reviewing US Census Bureau statistics determined the median household income in the Bay is roughly 60% above national average. Overall the largest income bracket in the Bay Area were households making between $100,000 and $150,000 annually, who constituted roughly 18% of households. On a national level the largest income bracket were households with incomes between $30,000 and $40,000 who constituted 13% of all households nationwide. Of the 100 highest income counties by per capita income in the United States, six are in the San Francisco Bay Area (Marin, San Mateo, San Francisco, Santa Clara, Contra Costa, Alameda).

According to Forbes Magazine, published in 2005, 12 of the top 50 most expensive Zip Codes are here (Atherton, Ross, Diablo, Belvedere-Tiburon, Nicasio, Portola Valley, Los Altos-Los Altos Hills, Los Gatos-Monte Sereno, the Cow Hollow-Marina District of San Francisco, Alamo, and Burlingame-Hillsborough).Forty-seven Bay Area residents made the Forbes magazine's 400 richest Americans list, published in 2007. Thirteen live within San Francisco proper, placing it seventh among cities in the world. Among the forty-two were several well-known names such as Steve Jobs, George Lucas, and Charles Schwab. The highest-ranking resident is Larry Ellison of Oracle at No. 4. He is worth $19.5 billion. Additionally, a Forbes survey of the super wealthy concluded that the Bay Area had the highest concentration of the super wealthy relative to other locations such as New York City and Dallas. "America's Greediest Cities". (Forbes Magazine) A study by Claritas indicates that in 2004, 5% of all households within the San Francisco and San Jose metropolitan areas held $1 million in investable assets. As of 2007, there were approximately 80 public companies with annual revenues of over $1 billion a year, and 5-10 more private companies. Nearly 2/3 of these are in the Silicon Valley section of the Bay Area.

A May 2009 Fortune Magazine analysis of the US "Fortune 500" companies indicates that the combined San Jose-San Francisco-Oakland metropolitan region ranks second nationally (along with metro Chicago and Houston) with 29 companies. Additionally, when the combined total revenue of the Fortune 500 list companies is considered, the San Jose-San Francisco-Oakland region again ranks second nationally after New York with $884 billion. As of 2010, the San Jose-San Francisco-Oakland region ranks second only to New York City (and ahead of Chicago and Houston) as the number of Fortune 500 companies has increased to 31 companies. (April 2010 Fortune Magazine) (Sources: Inside Bay Area, Stanford University, US 2005 Economic Survey and the San Francisco Chronicle)

Eitan: "Do the Americans know what a 'loo' is?"

Bang Bang

And it is Friday. Again.

This week it's the Nordics and I find myself in Copenhagen, Oslo, Stockholm (Nobel prize being awarded) and Helsinki. It is cold and winter and the sun rises at 9AM and sets by 3PM. Strange life for those who live here yet it is also charming with Christmas lights and storefront candles. I force myself to run in the early darkness and watch the cyclers and commuters brace themselves against the weather. No wonder this part of the world drinks more coffee than anywhere else.

Madeleine: "I love The Kooks."
Me: "Yep."
Madeleine: "Have you heard of the song 'Slim Shady?"
Me: "Of course. That's ancient."
Madeleine: "I was so proud of you when I learned that you knew Eminem."
Me: "Have you heard of the song 'Bang Bang?"
Madeleine: "Of course, Dad."
Me: "What do you think she's singing about?"
Madeleine: "I don't know. Anyway I'm not saying."
Me: "So when she says, 'bang! bang! all over me' what does that mean?"
Madeleine:
Me: "Back in my day, we only listened to songs about bunny rabbits. And cats."
Madeleine (under her breath): "Yeah, right."
Me: "Bang bang! the cute little rabbit jumped over a tree."
Madeleine: "Can I be excused now?"

Modigliani

Today I visit the Courdault Gallery where Renoir's "La Loge" is on display. These paintings, from 1874, are considered to be a master work of the impressionist movement and display the theatre boxes of Paris's cultural houses. The paintings present the social classes in various states from sexually beguiling to just plane board. Fan-taby-tosa, as Madeleine would say. Modigliani's female nude, pictured, reminds me of my wife.

I'm near Sommerset House (location of the Courdault) following lunch at nearby Christopher's, a cocktail-and-media haunt with my friend Matthew who is at the Economist. For the last four years we have engaged in a bet where the loser buys lunch. Bets have ranged from the fall (or not) of Google's stock price to David Montgomery going to prison (Dear Reader, I worked with David on a buyout several years ago and found him most unsavory). Next year the wager is on the non-dom tax and how many of us will leave. Matthew thinks small number while I think more than 18%. Stay tuned. A gentleman's side bet is Facebook losing 20% of its audience.

Catching up from Sunday: I return from Helsinki greeted at the door by the usual post-trip query spoken in urgency: "did you bring us any presents? Did you?" Ah, yes - familiarity. I'm in Nordea meeting with several investors and pursuing a secondary deal or two. Sonnet, the road-runner, recovers meanwhile from a half-marathon in Tonbridge Wells where she completes the hilly race in one-hour and 52-minutes. Bravo! This is the course I finished in 1:16.30 in 1998 while preparing for the London Marathon. I imagine I won't be going that fast again but oh well, I'm happy to be alive. Sonnet gives a press interview where she discusses feathers in fashion. Apparently they are making a come-back.

Nordic

Uspenski Cathedral

Helsinki to Göteborg to Stockholm in 24 hours, meeting with a few pension funds and other investors. Usual stuff.

I like the Nordics - there is a winter sensibility here missing from London or the Continent. First off, the city gets on with snow. Taxi drivers hit excessive speeds, the airports don't shut down and the roads are clear. People dress sensibly before stylishly (unlike Eitan who refuses to wear his winter jacket most winter days because, you know, the other boys don't wear a winter jacket).  But mostly I like the people who are friendly and a bit different.

Me (on phone): "How was your day?"
Eitan: "Ok I guess."
Me: "Anything interesting happen?"
Eitan: "Not really. We had a test. In sex ed."
Me: "That sounds awkward."
Eitan: "It wasn't very difficult."
Me: "Did you cheat and touch your willy?"
Eitan: "Ha ha!"
Me: "Well whatever you don't learn in the classroom you'll pick up by trial and error."
Eitan:
Me: "That was a joke. Sort of."

Spring ?

Queen Victoria St in the City

This is one of those days London known for : murky.

Eitan faces a conundrum as he is selected to represent his school in the British biathelon age group championshiops at Crystal Palace the same day as the All Stars take on Teddington in a match that may determine who wins the Surrey League's Premiere Division.

I am back from Helsinki a city I love - minus 8 degress and a foot of snow prevent me from running yet I enjoy a slippery stroll along the Boulevard admiring the strange Nordic-Soviet aesthetic : modern and kitsch at the same time. Looking over Töölö Bay is the Finish orthodox Uspenski Cathedral, designed by a Russian, which (now mostly empty) reminds me of Norman's house on the hill in Psycho.

Downtown Switzerland

I have an evening in Zurich and go for a jog along the lake. Since autumnal and the light changing with the afternoon and clouds, I bring along my camera and take a few shots – pictured. My first visit to Zurich in 1984 for a swimming meet. It looks no different today, really, despite a few new buildings and roadworks around the train station. Clean and charming. White. I dodge the trams to get across the street. From here it is Gutenberg, Sweden - a new city! -and Helsinki.

Zurich likes to call itself "Downtown Switzerland" (according to the Tourist Board) and is the largest city in Switzerland. While the municipality has about 380,500 inhabitants, the metropolitan area is nearly 2 million inhabitants. The canton was permanently settled for around 7,000 years ago and Zurich's history of goes back to its founding by the Romans, who, in 15 BC, called it Turicum. During the Middle Ages Zurich gained the independent and privileged status of imperial immediacy and, in 1519, was the place of origin and centre of the Protestant Reformation in German-speaking Switzerland, led by Ulrich Zwingli (www.zurich.com)

Zurich today is one of the world's largest financial centres while the low tax rate (27% flat) attracts overseas companies to set up their headquarters here - like Delaware maybe. Or HongKong. According to several surveys from 2006 to 2008, Zurich was named the city with the best quality of life in the world as well as the wealthiest city in Europe (source: Mercer Consulting). British hedge funds, banks and private equity funds are moving, or threatening to move, here.