Dining with

Stories of the fixer who understands people, finance and the Chinese spirit

Alberto Forchielli. At the renowned San Domenico restaurant in Imola, a wide-ranging chat covering Italian industry, privatisations, investment and the future of relations with China: stories from the fixer who understands people, finance and the Chinese spirit

7' min read

Translated by AI
Versione italiana

7' min read

Translated by AI
Versione italiana

‘I was in Singapore from 1994 to 1998. I was in Asia on behalf of Finmeccanica. A problem arose in Pakistan. One of our engineers had been implicated in a nasty affair involving suspicious financial dealings between Pakistani and Japanese companies. As our manager, he had not paid any bribes. Finmeccanica bore no direct responsibility, but it fell to us to deal with the problem. The authorities in Islamabad had issued an arrest warrant and an order for his detention. I worked with the Italian embassy and our intelligence services. The Pakistani police stormed into the hotel to take him away. He escaped by hiding in a laundry bag. We managed to hide him in a secret location in Islamabad. That in itself was a miracle: Islamabad is one of the most heavily monitored cities in the world. We did not know, however, what to do. An Italian soldier had been killed in an attack in Afghanistan. The Minister of Defence was Beniamino Andreatta. The Prime Minister was Romano Prodi. Andreatta was an economist. But he had fallen in love with the military world and field operations. He suggested to me that we secretly divert the flight. After the stopover in Kabul, where we needed to recover the body of the soldier who had fallen in action, the aeroplane would head for Islamabad and land for just a few minutes on the runway at its airport. Those few minutes were enough. Our engineer boarded the plane. We hid him inside a coffin. The plane took off again. He returned home. Finmeccanica was not implicated in the scandal. Prodi knew nothing of it. I only confessed this to Romano a year ago.”

Alberto Forchielli is a fixer. Someone who sorts things out and puts them right. But, unlike many others who operate in the same capacity within the human comedy of business and politics, he has one distinguishing feature: he is not unscrupulous; he does not risk – until proven otherwise – ending up as a guest of the state; and he cannot stand the weaknesses that lead so many to take advantage – even materially – of the crumbs that fall from the lavishly laid tables at which they sit. He has an almost moralistic streak that is not usually found in those who fulfil this Balzac-esque role, which is essential for good and evil to form the amalgam of reality. Speaking of tables, we are seated at San Domenico in Imola, one of the first Italian restaurants to be awarded (and to retain for years) a Michelin star – which has long since become two.

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Today, Max Mascia is in charge of the kitchen. We’re in the private dining room that the owners reserve solely for friends, with a glass wall looking straight into the kitchen. “Alberto, having this space is a masterstroke,” I say to him. In provincial Italy, such privileges are granted not so much to individuals as to members of certain particularly respected families: “You know, I’d never really thought about it before? You’re probably right. My father, Paolo, was a university professor of civil law in Bologna. My mother, Maria Grazia, was a noblewoman, the daughter of Giacomo Dal Monte Casoni, a working-class Catholic anti-fascist who was a member of the National Liberation Committee for Northern Italia during the Second World War and, from 1945, president of the Cassa di Risparmio di Imola for twenty years. My grandfather Giacomo, as well as running his own civil law practice, fostered a harmonious relationship with the Communist Party as a Christian Democrat and, as a banker, acted as a pioneer of venture capital. Without his forward-thinking and optimistic decisions, no one in Imola would ever have granted credit to Sacmi, Cefla and the Cooperativa Ceramica – all of which went on to become major manufacturing powers. It was the Italia of Giovannino Guareschi, where Don Camillo and Peppone would fight tooth and nail, yet talk things through and were more than just friends.”

Alberto tells his story whilst the waiter pours a glass of Jacques Selosse champagne. Served at the table are small scallop nuggets with an oyster reduction made with Dry Martini, small fillets of salt cod with datterini tomatoes in a pizzaiola sauce, mini Romagna-style piadinas and fried tortellini. He was educated at the University of Bologna and Harvard Business School, was part of the elite Mac Group network founded by the very same professors from Boston, and spent years in Chile and Peru working for the World Bank. He experienced the first wave of Italian privatisations (as Secretary-General for Privatisations at Prodi’s IRI) and helped rebuild the Balkans following the war in Serbia, in Croatia and in Bosnia and Herzegovina with funding from the Central Investment Bank, where, alongside Massimo Ponzellini, he formed an effective and unconventional Italian partnership in contrast to the dreary formalism of the Luxembourg-based Euro-bureaucracy.

Forchielli acted as a link between part of the West and China, without being absorbed by the latter. Alberto recalls: ‘My first trip to China was in 1994. In 2004, I took over the Atala bicycle business in Padua. I started sourcing mechanical components from China. That was when I became acquainted with high-quality Chinese medium-sized mechanical engineering firms, which had strong links to Taiwan.”

In September 2005, he founded Mandarin Capital Partners, the world’s first firm with (among other sources) Chinese capital to invest in China from the West and in the West from China. There have been four funding rounds: in the first two, $328 million and $195 million were raised respectively, with the value realised doubling compared to the amount invested. The third round raised $230 million. The fourth is still open. Between direct and indirect investments, forty transactions have been completed. The waiter brings the truffle-infused goose liver tartlet, a great classic at San Domenico, perfect – perhaps like any dish in the world, even a mortadella sandwich – with Selosse. ‘It was a completely new development,’ he recalls, ‘for the first time the Chinese were investing alongside Westerners, sharing strategies and leaving the day-to-day management to an Italian. The partner investment banks were the China Development Bank and the China Import and Export Bank. Gao Jian, head of the former, was the vice-chairman of Mandarin. The two leading figures in China at the time were Hu Jintao and Wen Jiabao. The Chinese believed in Mandarin. I made forty trips, from the coastal cities to the most remote provinces, to visit the branches of the two shareholder banks and to explain the project. The head office was in Hong Kong. With the benefit of hindsight, I can say that we were too small. Between 2008 and 2012, Chinese investment abroad and foreign investment in China reached a whole new scale. We, however, kept following the leads. China was brimming with entrepreneurial vigour and a desire for new prosperity. The Chinese spoke with a certain degree of freedom – amongst themselves and even with foreigners.”

San Domenico’s most famous dish is served: a giant ravioli with an egg at its heart – absolutely delicious. The Selosse champagne pairs perfectly with this quintessential example of modernised Po Valley cuisine. Forchielli pauses for a second and then says: ‘I’m leaving Mandarin at the end of the year. Setting aside my own personal situation, which matters little, the Italian system has a problem with the Chinese. The ousting of Sinochem from Pirelli’s shareholding following the Meloni government’s adoption of the ‘golden power’ is a wound that cannot yet be healed. The Chinese invest in established companies. And Italia has told them ‘no’. The Chinese invest in new high-tech business ventures, but these are few and far between here and rather fragile. Given this, how can one even imagine, for example, that the Chinese would get involved in the automotive sector? Moreover, even if they were to take over a factory or a brand from the old Fiat, why should they transfer the best of their technology in electric vehicles and digitalisation to us? Do you remember when we used to send the Duna and the Palio to China?’, says Forchielli.

The waiters at San Domenico insist on bringing us a second course. Whether it’s Michelin-starred or not, we’re still in a restaurant in Romagna. Forchielli looks glum: ‘In China and Europe, I felt like a king. Lots of people used to come to see me. With the rise of Xi Jinping, the people tasked with managing the fund were replaced. My biggest setback concerned Dagong, the Chinese rating agency that could have broken the oligopoly of S&P, Fitch and Moody’s. Mandarin held a 35 per cent stake. I went to the Treasury and the Bank of Italia. In 2013, Dagong received authorisation to operate in Europe and opened its office in Milan. Shortly afterwards, the management team imposed by Xi began to operate in a manner that was at odds with Western standards. And, two years later, we at Mandarin withdrew from Dagong.”

The chocolate ice cream is absolutely brilliant. And the Selosse goes down a treat with it too. Forchielli possesses the ruthlessness of a natural fixer and an entrepreneur with a passion for people and factories: ‘Xi Jinping’s Party has shut down the bars where Chinese and foreigners used to speak freely, has tightened its grip on every initiative previously shared with European partners, holds a monopoly on electric cars and controls rare earths. Thirty per cent of global industrial production comes from China. Except that China is operating at half its output capacity. This means that 60 per cent of the world’s industrial potential lies with China. We must find a balance. But we must understand that they have never wanted to, and never will want to, become Westernised’, concludes Alberto Forchielli, a native of the land of Don Camillo and Peppone, a man who solves problems and an entrepreneur from a time when even that melancholic yet cheerful genius, Giovannino Guareschi, would have found it difficult to have (Chinese) communists and non-communists (Westerners) speak in his stories.

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