Giancarlo Giordano, "Monaco’s competitive advantages are now going to be quality, prices, results"

2015-10 giordano

In March 2008, three finance and financial markets professionals joined forces to found G&G Private Finance S.A.M. Meet Giancarlo Giordano, President and CEO, who embarked on an entrepreneurial adventure after 16 years in private banking in Monaco with Crédit Suisse and Banque Rothschild.

In 2013, you expressed your satisfaction with G&G Private Finance to us. At what point are you now?

Since 2013, the company has developed its business through the new  foreign funds management authorisation we obtained last year.  We now have highly specific investment know-how that is complete and high performing. We can now manage directly, or advise, SICAV or foreign OPCVM. We have also launched two funds in the form of investment certificates, with lighter legislation: a CIS (Eastern Europe and Russia) investment fund, and Action Stock Picking (US/Europe market), thus enabling us to improve our management performance appreciably.

How are you structured?

We currently number sixteen, including eleven salespeople, directors, a finance director, a compliance officer and an asset manager. We are entrepreneurs who are there in order to create. There are challenges and nothing is guaranteed, but creativity is the only way to move forward.
We are developing our sales network with new private managers, some of whom have become company shareholders. We are opening up to the partnership philosophy – our private managers can become partners. It ensures the longevity of the company and the stability of the workforce.

And you have a new shareholder

Our historical shareholder, a Geneva-based private bank, has handed over to a hedge fund manager institutional shareholder – the Paris house Olympia which has 25 years’ experience in alternative management of funds decorrelated from market performance.
Our next step will be to also distribute this house’s funds, firstly a European real estate fund. We have moved from traditional to more modern management. You need different products to meet demand, which is becoming less financial and more geared to tangible goods such as high quality residential or commercial property, in Europe where the risks are minimised. There are other high-growth business sectors, such as those stemming from the aging population.
We work on long-term investments with real gain prospects. Alternative products are becoming financial products. The hazard of indirect investment is removed by offering more liquid products with stable, sustainable profitability.

Who are your customers?

They are multinationals, mainly European and particularly Italian through our past history, but not only them. Our historical customers are Monaco residents. We do not yet have a large window to the Eastern countries  - that will be our next development step, with the countries of Asia and Africa.

What about your relationships with the banks?

We work with three or four custodian banks, among the ten largest Monegasque banks. Our customers have been calling for bank diversification since the 2008 crisis when systemic risk emerged.  They try to diversify their wealth management across two or three different institutions, in countries of different jurisdiction. They also see geographical diversification as important.
Banks are our partners, a good bank is an asset which helps everyone’s development. Besides, more and more Monegasque banks are opening an asset management department.

And with your counterparts?

We are considering synergies with professionals in those markets or financial investment sectors already present in Monaco. We are in a limited geographical area, which gives us easy access to highly targeted financial management engineering. We seek the best products from the best producers, in Monaco or elsewhere. For real estate for hedge funds, we are doing the same with our shareholder. We target the top professionals for each finance occupation in order to offer our customers the best.

What about the future?

We have consolidated seven years of operations. We have achieved our objectives notwithstanding the financial and fiscal crisis. In the coming years we will develop through external growth, via mergers or acquisitions. It saves time, enables us to reach critical mass quickly and to partner with quality people. We are established for the long-term.
Many new players have come to the financial centre, some of great quality. They will continue and expand. The creaming off will be effected on the ‘old’ school, pre 2008.
The Monegasque model is evolving. Monaco is opening up to the European and international regulations. There will be real collaboration between Monaco and all countries of Europe. Monaco’s competitive advantages are now going to be quality, prices, results.
The quality of customers’ contact people is improving and this needs to continue. Professionalisation of the financial centre is a must and the quality of human relations remains paramount.