A service of

Rodolfo De Benedetti, Partner at Decalia, on private assets trends


In this fireside chat, Rodolfo De Benedetti, Partner at Decalia, shares his expertise on private asset trends, investment strategies, and market considerations. With a background in finance and family business, Benedetti offers a unique perspective on the private market landscape.

Timeline:

  • 1970s: Benedetti’s family founded their holding company, where he later worked and became CEO.
  • 10 years ago: Benedetti stepped down as CEO and started Decalia, a wealth management and asset management company based in Geneva.
  • 2015: Decalia began focusing on private credit, taking advantage of the underdevelopment of the asset class and the retreat of banks from lending activities.

Key Topics:

Private Asset Trends: Benedetti emphasizes the importance of combining top-down and bottom-up approaches to investment. He highlights the growth of private capital in terms of AUM and the creation of pockets of overvaluation and undervaluation. Decalia’s strategy involves finding niches where capital has more value and partnering with teams that have a track record and domain expertise.

Track Record and Red Flags: Benedetti stresses the importance of diligence and research when selecting investment teams. He looks for teams with a strong track record, a leader who wants to build a business, and a focus on talent pool diversification. Red flags include reputational issues, lack of transparency, and a focus on short-term gains.

Incentivization and Alignment: Benedetti believes in aligning interests between investment teams and investors. Decalia invests its own capital in its products, ensuring that everyone is in the same boat. Incentives are structured to reward performance and align with investor interests.

Portfolio Composition: Benedetti acknowledges that Decalia’s portfolio is skewed towards private credit, which has been a focus area for the company. He believes that private credit offers attractive risk-return opportunities, particularly in the current market environment.

Engaging Quotes:

  • “I don’t think we pretend that we are good at timing markets. We don’t do in and outs.”
  • “We want to work with people that have both the competence and the instinct to be investors.”
  • “Reputation is very important. It’s not just about being honest; it’s about the way you treat people.”
  • “Alignment is very important. We start with ourselves, and we invest our own money in our products.”

Insights and Takeaways:

Private credit has grown significantly in recent years, driven by the retreat of banks from lending activities and the search for yield in a low-interest-rate environment. Investment teams should prioritize alignment of interests with investors and focus on building a sustainable business. A combination of top-down and bottom-up approaches is essential for successful investing in private assets. Due diligence and research are critical when selecting investment teams and opportunities.

Key timestamps:

00:09: Introduction to ION Influencers’ Fireside Chats
00:33: Rodolfo De Benedetti’s Background and Decalia
02:36: Transition to Private Asset Investment
05:08: Approach to Private Asset Classes
07:57: Focus on Niche Strategies and Partnerships
11:47: Direct Investments and Swiss Market Focus
12:23: Evaluating Track Records and Red Flags
17:45: Incentivization and Alignment of Teams
21:00: Portfolio Composition and Market Considerations
22:06: Lessons Learned and Portfolio Skew
23:36: Factors Driving Private Credit Growth
24:02: Underdevelopment of Private Credit
25:33: Diversification into Equity and Real Estate
26:06: Continued Attraction to Private Credit
26:42: Concerns about Private Credit
27:07: Rapid Development of Private Credit
28:23: Differing Opinions in the Market
28:57: Investment Strategy Outside Decalia