Lombard Odier: 'Investing in private markets requires a tailor-made approach'

"Private markets are certainly an important opportunity for investors to seize, but there is no standard solution". Frédéric Rochat joins the discussion revolving around illiquid assets and their presence or absence in the portfolios of private clients proposing a viewpoint based on a "tailor-made" approach. The choices, according to Lombard Odier's Managing Partner, depend crucially on the profile of the client in front of you: "Some entrepreneurs," he explains in an interview with Il Sole 24 Ore, "are already heavily exposed to an illiquid asset and therefore do not need further private investment while others, after selling the company, can instead benefit from a share of private assets".

The relevance of the private markets 'which today offer access to important sources of innovation, from technology to life sciences, often not available on the listed markets' is therefore beyond doubt, but it is just as fundamental to subject the investment decision to a careful assessment that cannot disregard the analysis of each individual situation. "We listen, we plan, we build together with the client the most suitable allocation over time," continues Rochat, who in this respect likes to compare Lombard Odier to a "craftsman of asset management", i.e., able to offer a "tailor-made" service and act in a way that is opposite (or perhaps better, complementary) to the large international groups that are often characterised instead by the standardisation of services.

The main clients of the Helvetic maison, moreover, almost all share a common trait: "They are entrepreneurs, each with a different, often unique story, but all united by an entrepreneurial success built over time," explains Rochat. An investor whose choices thus reflect the doubts that surround today's reality, the great volatility and uncertainty arising from an unstable geopolitical framework, more nervous markets, and even the revolution dictated by technology and the phenomenon of artificial intelligence, which today is capable of radically changing entire sectors. And it is precisely in a context in which nothing is taken for granted any longer, the manager recalls, that 'many entrepreneurs are reviewing their fundamental choices: which bank to work with, which model, which country to live in, where to raise their family and where to locate their assets'.

In this respect, Italy seems to benefit from this rethink. "It has become one of the destination countries, both for Italian entrepreneurs who return and for international families who choose to move there because it offers a very rare combination of the rule of law, belonging to Europe, quality of life, adequate tax incentives and an entrepreneurial fabric spread throughout the territory, from the North-East to the Centre-South: a plurality that makes it increasingly attractive," acknowledges Rochat. For this reason too, ours remains a strategic market for Lombard Odier, which aims to occupy an intermediate position between the large banking groups (domestic and international) and niche operators: "We combine local presence with Swiss-style international expertise," he adds, "and offer Italian entrepreneurs something that goes beyond the traditional offer, a global vision and an exclusive focus on investments.

The Italian client, for its part, has shown changes in recent years: "It has become more sophisticated," indicates Rochat, "it shows a growing interest in more evolved solutions, including alternative investments and private markets, and it has also increased its awareness in its choice of counterparty, it wants solidity, stability and transparency and is no longer satisfied with a big name. Lombard Odier is therefore ready to play here - under the direction of Stephen Kamp, Head of Southern Europe & Latin America, and with Alberica Brivio Sforza at the helm of activities in Italy- the role of specialised partner for investment management and natural complement for entrepreneurs already working with other banks for mortgages or corporate financing. With the added distinction of independence: 'We are entrepreneurs who work alongside other entrepreneurs,' concludes Rochat, 'and this means that our interests are aligned to those of our clients in the long term.