Sella Cib: links with the territory and the ecosystem to support businesses

"We have the great opportunity to stay close to local entrepreneurs through a qualified and innovative network, and a well-structured product offer. Our nurturing attitude and spirit of service are part of our DNA". About two and a half years ago, the Sella group launched the Corporate & Investment Banking division. Giacomo Sella, Vice President of the Group and Head of this activity, took stock of the progress made and prospects for the future in his recent interview with Mf Dow Jones. Here is a first assessment. 

"Despite the context, the business is performing above expectations. We exceeded our targets albeit with a different mix than we thought. We are active in three sectors M&A, private debt and leveraged finance. Besides, we achieved an investment portfolio of 90 million euros and closed 15 leveraged finance transactions, worth 75 million euros (out of a total of 90)". 
The COVID-19 pandemic had a major impact on the general scenario: "M&A activity in 2020 slowed down sharply, with a market recording 35%. The private debt had an excellent 2019 and a weaker 2020: issuance volumes collapsed, except for basket bonds. The leveraged finance segment held out: transactions continued without interruption ".

Q: Do you see any recovering activity? What mandates are you currently collecting?
A: There's a strong recovery in the private debt and we are now collecting the mandates. In this regard, we expect an acceleration in the interventions of institutional subjects such as CDP and Mcc, but not in the active funds in the segment. Institutional investors will hold the market, waiting for a return to normal. We then estimate a significant recovery in the M&A activity and see three trends underway. First: the rationalization of the market, especially in textiles and fashion, involving aggregations and mergers. Second: a trend linked to generational changes. Third: the application of digital technologies and service models. As far as leveraged finance is concerned, we expect it to continue regularly. Forecasts are strong. In summary: we estimate a recovery in all three areas.

Q: Have you made or are you planning synergies with specialized platforms?
A: We are investigating Crypto Securities' platforms but our analysis is, however, in an early phase. The market is, furthermore, quite virgin on this concern, but it is accelerating. Creating synergies to raise capital is something experimental for us.
 
Q: Are you planning to enter into agreements with other investment banks?
A: In these two and a half years of activity, we have strengthened our original vision: we want to focus on companies active in the technological and family-run sectors. We will do this by forging greater synergies with the Sella innovation ecosystem to support these realities in raising capital for growth.
 
Q: How will you face competition?
A: We focus on consistent development and talent attraction. We have 15 active resources in the Cib division which will increase to 20 during this year, and again gradually, over three years. The main strategy involves the offer of more and better-advanced consultancy services to our clients.