During the interview
«In telling my story I would like to tell you that at 20 I had already foreseen everything. It would be very impressive, it would be the ideal start for exceptional storytelling. This is what talented American entrepreneurs often say: “…since college I knew that my life’s path was set, and that’s exactly what it was…” But for me, and I mean it, it wasn’t like that.».
The chat with begins with this joke Massimiliano Cagliero, Turin, born in 1969, in the elegant and polite offices in Piazza Carignano. View of the square, overlooking the building where the first Parliament of our country was born, one of those places from which we can objectively say that “a lot, if not everything, started right here”. Elegant and polite offices exactly like him, founder and CEO of Banor SIM, today one of the main Italian financial intermediation companies, specialized in the management of capital and assets for institutional investors, private individuals and large entrepreneurial families. Over 12 billion in Assets Under Supervision, three offices in the heart of Milan, Rome, Turin and also presence in Monte Carlo and London, around 170 collaborators.
In general there are two ways to manage assets: looking at the market in its macro aspect or investing in companies. We believe in virtuous companies and this is what we have always done
Cagliero welcomes us with great courtesy and is ready to tell his story, with the enthusiasm that characterized the birth and growth of his creation. If nothing was already marked, it is even more legitimate to ask: where did Banor SIM come from?
«Do you mean how the idea or the company itself was born? Because they are two questions that require two different answers. I would start from the true birth of Banor SIM: after graduating in Business Administration from Bocconi University in Milan, I attended the Master in Economics and International Finance at the Wirtschaftsuniversität in Vienna and the MBA in Business Administration at Harvard Business School. From here I went to gain experience first at Goldman Sachs International and then at McKinsey & Company. Meanwhile, the ambition for an independent professional and entrepreneurial experience was growing in me. But at 28 you can’t think of creating a management company from scratch. Banor SIM thus originated from advice from someone who had more experience than me: in 1999, together with a partner, I took over Banor SIM, a small Turin company then managed by four partners and with 40 million euros in assets. The aspiration was to create an independent private banking hub in Italy that would implement the principles of value investing. So it was. Partly thanks to market conditions, partly thanks to the skill of the entire team, in 24 years we have become a point of reference in the sector for private and institutional clients, as well as for major American and international investors».
But, as you said, there was a very specific idea behind the project, right?
«Exact. I grew up in Turin attending the Jesuit college. Social was a complete experience for me from all points of view: discipline, method, more substance than form. I owe a lot to this training as well as to the typically Turin culture: “first you do things and then, perhaps, you say them”. Here, in this context my idea of entrepreneurship developed, aimed at creating jobs and giving something back to
community, have opportunities to engage in giving back. Doing business to get rich is certainly an understandable goal, but I believe it is difficult to sustain in the long term. Here, however, we aim for solidity because a rich income statement, for me, is equivalent to being able to invest in good people and interesting projects with a view to growth».
So what were the objectives that guided you to this point?
«Building an exceptional team to accompany extraordinary customers. Much of Banor’s growth is not due to Massimiliano’s brilliant intuition, but to the team work done by my collaborators who did not
I exaggerate in calling entrepreneurs, highlighting their autonomy and resourcefulness. I believe there are different ways to manage collaborations: hiring a large number of people and efficiently monitoring their work, or selecting them carefully, not only from a professional point of view, but also from an ethical and principled point of view. This was my choice: this is demonstrated by the practically zero turnover, which is reflected in an equally zero turnover of the customer package. There are important Turin families who put their trust in us in the beginning and who still follow us. The satisfied customer is the best marketing channel and this is a great achievement for all of us».
When did you realize it would be a success?
«I would summarize in two moments: the first when I received authorization from the supervisory bodies to operate in the asset management industry. With my partners we were complete strangers in the eyes of the market! Yet they believed in us and this was the step that allowed us to start playing in Serie A. Second, when we started hiring: only quality people bring quality. When, in a sector which was also experiencing a period of overcrowding, applications began to arrive from those who were working for the big names in financial advisoring, then I understood that we were on the right path. If I think that we didn’t even have a business plan when I opened the Turin office…».
So what pushed you to take this step 24 years ago?
«I believed in Turin, and the families and institutions that supported us proved me right. In 12 months we had already reached break even. I had dared and it had been the right choice. It often happens that people set limits for themselves, the Piedmontese do it more than ever. How we love explaining to ourselves why we can’t do this and that! In this sense, however, I love American culture: there really is the desire to dream. Of course, it would be better not to do it unless supported by rationality, but just trying means you’re halfway there. It’s a bit like the story of the bumblebee: who said he can’t fly? I’m reading a book “Enthusiasm makes the difference”. I am sure».
From Turin to the world: Banor has grown by positioning itself as an international reality.
«Banor remains an Italian company, proud to be such (with many Turin collaborators recognized for their skills, seriousness and sense of belonging), but with an international vocation. Meetings are held in English; we move between London, USA and Asia to offer experience and knowledge to our investors, also proposing solutions that are difficult to access due to territorial limits or even due to the access thresholds themselves. One of our strengths is the alignment of interests between us and the customer. We never offer products in which my partners and I were not the first investors.” Transparency, service, value management: this is how we have grown. And on a scale of 0 to 10, I would say today we are still at 1.1 of what we can do».
In the current context, how is your profession changing?
«In general there are two ways to manage assets: looking at the market in its macro aspect or investing in companies. We believe in virtuous companies and this is what we have always done. I’ll give you some examples. The attack in Israel occurred on a Saturday; everyone was waiting for the markets to collapse on Monday and yet this was not the case. We have reached such a level of insensitivity in the financial markets that the stock market has not suffered any shocks. Another situation, the pandemic: with the lockdown the market suffered, of course. But in April 2020, we invested like never before and with choices that are proving us right. Our work is not the result of speculation, it is rather the result of in-depth analyses, which last up to a year, looking at the quality of the companies and the ethics of the management. Where will they be in 10 years? This is what we ask ourselves in the evaluation. Risk is different from volatility. Banor uses volatility to enhance investments by considering it a harbinger of opportunities, while the risk is the permanent loss of capital».
He has always declared himself strongly attached to his city. But what if he were to identify critical elements?
«There are many highly prestigious entities in Turin, just think of two excellences such as the Sanpaolo Foundation and CRT which do so much for the city. But what is missing in Turin are connections. I moved to Milan solely for the convenience of flying to London from Malpensa having 10 flights a day available. And then let’s ask ourselves why young people from Turin leave Turin: we are talking about a quality emigration made up of boys and girls who trained in the most prestigious universities and who then take their value elsewhere. A real shame: we have to find a way to bring them home and give them the tools to dream. Think how much a lie nen and moreover dreamer can give to the city».
Once again we witnessed a small, great story that was proudly Turin and passionately international.
(photo MARCO CARULLI)
