In a recent fireside chat hosted by Giovanni Amodeo, Alessandro Santini, Group Executive Board Member – Ceresio Investors, delved into the pivotal role of private capital in wealth management. The discussion highlighted the bank’s specialization in active asset management and co-investing with families, boasting a robust portfolio management of 8.4 billion euros.

Santini shared insights from his extensive career, which includes significant stints at Deloitte and BSI Merchant, before his current role at Ceresio where he spearheaded the corporate and investment banking division. This division focuses on corporate advisory services and direct investments, emphasizing long-term, minority-stake investments in companies they thoroughly understand.

The conversation also touched on the synergy between private asset management and corporate investment banking within the bank. Santini illustrated this with examples of how liquidity events from corporate advisory lead to asset management opportunities.

A significant part of the discussion was dedicated to the growing trend of club deals in Europe, where investors prefer direct control over their investments, contrasting with traditional private equity models. Santini noted the appeal of club deals due to lower transaction costs and greater control over investments.

Looking ahead, Santini discussed the deal flow, which primarily stems from their advisory activities and sometimes from collaborations with other banks. He emphasized the importance of understanding the entrepreneur and the business model before investing.

The chat also covered the use of technology in analyzing potential targets, where Santini stressed the importance of a deep understanding of management teams over purely technological assessments.

In conclusion, Santini highlighted the bank’s selective approach to mandates to ensure quality and maintain long-term client relationships, reflecting on the bank’s strategy to grow without compromising its boutique advisory quality. This insightful session not only shed light on Ceresio’s strategic operations but also on broader trends in private capital investment and wealth management.

Key timestamps:

00:09: Introduction
02:00: Alessandro Santini’s Career
03:35: Role of Corporate Investment Banking
04:27: Synergies Between Private Asset Management and Corporate Investment Banking
06:09: Importance of Club Deals
07:10: Comparison of Club Deals and Private Equity
08:24: Approach to Club Deals
08:56: Deal Flow and Business Development
11:30: Use of Technology in Deal Analysis
11:55: Data Storage and Expertise
15:43: Impact of Interest Rates on Consumer Companies
19:42: Handling Unrealistic Expectations of Entrepreneurs
20:38: Preliminary Company Evaluation
21:58: Setting Expectations
22:39: Long-Term Relationship
23:29: Maintaining Quality and Balance
24:22: Long-Term Approach
26:15: Attracting Talent
29:13: Future Hiring Trends