Italian entrepreneur and investor Rodolfo De Benedetti enjoyed close ties to Switzerland from his early years, he tells finews.com. He also spoke about not-always-easy dealings with his father, pre-eminent Italian businessman Carlo De Benedetti.
Rodolfo De Benedetti, you studied in Geneva and later worked for the private bank Lombard Odier. What is your relationship with Switzerland?
When I was 14, my parents sent me off to a boarding school in Villars-sur-Ollon, so I spent most of my youth in Switzerland. I joined Lombard Odier right after my studies. The years I spent in Geneva were certainly very formative for me. When I was 25, I left for New York.
What do you like about Switzerland?
My family always had a special relationship with Switzerland. We are of Jewish origin, and during the Second World War, my grandparents, my father and my uncle emigrated to Switzerland from Italy because he no longer felt safe in his homeland. That was in 1943 and the family settled in Lucerne, where they spent several years.
«You cannot choose your fate»
Later, in the 1970s, we lived in Turin and the police made my father aware that the family’s safety was no longer guaranteed due to the threat of the terrorist Red Brigades (Brigate Rosse). So, my brothers and I emigrated to Switzerland; my father now lives in Lugano.
My brother, Edoardo, is a cardiologist in Geneva, and I am regularly in Switzerland because of my work for Decalia Asset Management.
Your father, Carlo De Benedetti, now aged 86, is one of the most influential entrepreneurs in Italy. Was it a burden for you, growing up as his oldest son?
You cannot choose your fate. It's a privilege to have such a personality with an extremely strong character as a father. At the same time, it was also important for me to follow my own path.
«That put a strain on our relationship»
Unlike my brothers, I worked with my father. This began in the late 1980s, after my time in New York. My father wanted me to join and he insisted that I come back. So I returned to Italy. I told myself that sooner or later I would have taken this step anyway.
Working with a company founder – especially when it's your own father – is not easy. In fact, he gave me enough freedom and wanted to retire from the business over time. But emotionally, he found this very difficult. That put a strain on our relationship. He initially withdrew operationally from the company and entrusted the family business to my brothers and me in 2013.
In 2013, after more than 20 years of operational management of the family holding company CIR, I proposed to the board to appoint Monica Mondardini as CEO and took over as chairman of the Group's Board of Directors.
(In June 2013, Carlo De Benedetti handed over the management of his holding company completely to his three sons. But a dispute arose because the sons wanted to sell their father's life's work in journalism to the Agnelli family, of all people. Under the family patriarch and Fiat boss Gianni Agnelli, the Agnelli family already had their mainstay in the conservative traditional Turin newspaper «La Stampa.» The efforts of father Carlo to buy back the company failed. The sons sold their shares in April 2020 for 102 million euros to Exor, a holding company controlled by the Agnelli-Elkann family.)
Over the years we reorganized the holding company and exited the media business (which comprised «La Repubblica,» «La Stampa,» «L'Espresso» and other local newspapers and radio stations). Today, the CIR Group focuses on the healthcare sector and automotive components. This repositioning gave me the freedom to co-found Decalia in 2014.
How did this come about?
The financial world has always been at the center of my work. In 2013, after I had taken over as chairman of the CIR Group, my dear friend Alfredo Piacentini had just left the Geneva-based bank Syz, which he had co-founded. We had known each other for 35 years. We thought that now was the right time to get something going together. So we decided to set up an asset management boutique.
«As we invested our own money in our strategies, many clients trusted us and valued the alignment of interests»
At the same time, it was clear to us that we were at the beginning of a long period of very low-interest rates. For investors seeking acceptable returns, this challenge of generating attractive returns became increasingly difficult. As we invested our own money in our strategies, many clients trusted us and valued the alignment of interests.
Success in asset management depends heavily on a company's ability to differentiate itself from its competitors. What makes Decalia different?
We decided early on to pursue thematic approaches in our investments according to themes that we believe will shape the next 20 years. In other words, not short-lived fads, but fundamental trends that will change our everyday lives and the world substantially and sustainably.
What are these topics?
We identified the millennial segment at a time when few investment companies saw its potential. This is the very first generation that grew up completely digital. This has demonstrably influenced and shaped their lives and behavior, from how they consume to how they travel, dress, and shop – all digital.
«There are no patents on smart investment ideas»
With these insights, we selected companies that stand to benefit the most from this development. We were certainly among the pioneers and subsequently found many imitators. This has given us a reputation and a great deal of know-how. Unfortunately, there are no patents on smart investment ideas, which is why a whole range of such funds now exists.
Another topic we manage is the so-called circular economy, which designs products that are easy to dismantle and recycle after use, giving preference to rental and usage rights over ownership, and relying on renewable energies.
What trends has Decalia identified for the near future?
One megatrend is illiquid private market investments, where we were among the first specialists in Europe. As we believe that very low-interest rates will remain with us for years to come, we see a lot of potential in credit private credit strategies. We also invest in commercial properties that are occupied by new tenants, i.e., companies that are active in logistics, e-commerce or healthcare, for example.
For this purpose, we have built up a Swiss portfolio that currently comprises more than 200 million francs ($220.65 million) in assets. The current yield is over 5 percent. As soon as the vehicle reaches a certain size, we plan to list it on the SIX Swiss Exchange.
How much has the Corona crisis affected your business?
Like other financial institutions, we switched over to working from home quickly, which went very smoothly. This enabled us to remain in touch with clients. Nevertheless, a zoom conference cannot completely replace personal contact.
«All in all, Covid-19 is a disaster for mankind that will weigh on us for a long time to come»
The pandemic has accelerated digitalization immensely. This, in turn, has increased the value of the companies in which we have thematically invested. Provided you choose the right investment themes, it’s a bit like sailing with the wind instead of against it. All in all, Covid-19 is a disaster for mankind that will weigh on us for a long time to come. At the same time, however, it also brings with it the hope that we will look for more sustainable business models.
Are you personally planning other commitments in Switzerland?
No, I would like to devote myself entirely to Decalia and CIR. Launching a company from scratch is a constant challenge that requires a great deal of concentration.
With your connections, you could also aim for a seat on the board of a Swiss bank.
Decalia is a priority. Anyway, there are still too many banks and asset managers in Switzerland. Over the next 10 years, I expect to see massive consolidation in the industry.
Is Swiss finance on the brink of collapse in the face of such expectations?
Asset management is a growth market, and Switzerland offers the best conditions for this with its multilingualism, high level of education, political stability and legal security, a strong currency and flexible labor market.
«I prefer to leave that to my family members, who have talent for it»
Switzerland has proven that it has the prerequisites for success. But it must not rest on its laurels. As far as the financial center is concerned, it must become even more competitive, professional and efficient – especially in terms of investment performance.
Both your wife, Emmanuelle de Villepin, and daughter, Neige De Benedetti, are successful authors. Have you never been inspired to write a book yourself?
No, I prefer to leave that to my family members, who have talent for it. I like to read, and I always appreciate being one of their first readers.
What have you missed the most in the past few months?
Most of all, I’ve missed the limited mobility and difficulty in maintaining personal contacts, both in my private and professional life.
Rodolfo De Benedetti, born in 1961 in Turin, Italy, has been chairman of CIR since his appointment in April 2013. The CIR group, of which he is a controlling shareholder together with his brothers Marco and Edoardo, operates in the healthcare (KOS) and auto components (Sogefi) sectors.
Before that, he worked from 1985 to 1986 for Lombard Odier, as an assistant to the CEO. From 1987 to 1988 he worked for Shearson Lehman Brothers (New York). Currently, he is a co-founder, shareholder and director of Decalia Asset Management, an international investment management company established in 2014 and based in Geneva, Switzerland.
He is a board member of Aon Italia, a risk management, insurance and re-insurance brokering company. He graduated from Geneva in 1982 in Political Economics and in 1985 in Law.
