Lionel Pilloud and Rémy Savoya, from BIL Switzerland, present their growth projects in both corporate financing and wealth management.
Corporate financing is one of the professions that attracts the most attention at the start of the year. After the end of Credit Suisse, several companies do not hesitate to express the difficulties in obtaining quality financing from Swiss players.
Foreign banks in Switzerland declare their ambitions in this niche. BIL Suisse, a subsidiary of Banque Internationale à Luxembourg and holding its Swiss banking license since 1985, appointed Lionel Pilloud as head of its Geneva office on September 1, in order to accelerate its development there.
There are numerous plans for 2025, the year of the Bank’s 40th anniversary in Switzerland. Rémy Savoya, head of Global Advisory and member of the Bank’s management committee, joined BIL Suisse in 2020, when the bank had around a hundred employees, to launch and then manage the corporate and investment banking activities, a business on which the bank was able to rely on the experience acquired since 1856 existing at the level of the Luxembourg group rated A2 by Moody’s. Lionel Pilloud and Rémy Savoya, answer questions from Allnews:
What are its particularities of BIL?
Lionel Pilloud: BIL is a systemic bank in Luxembourg, with universal activities, but still relatively modest in Switzerland. BIL Suisse, which is the subsidiary of a Luxembourg bank, stands out for its presence in both corporate financing and wealth management.
Who are the group’s shareholders?
L.P: BIL has two main shareholders, the Grand Duchy of Luxembourg and Legend Holdings, which has a majority stake. Listed on the Hong Kong Stock Exchange, Legend Holdings is also the main shareholder of Chinese computer manufacturer Lenovo.
Is it a hindrance in your development to have a Chinese majority shareholder?
R.S: Our clients clearly understand our roots in Luxembourg since 1856 and in Switzerland since 1985, with decisions taken locally and being regulated by the ECB and FINMA. Our two shareholders support our strategy, it is an asset to continue the growth of our activities
“We are going to move from Boulevard Georges-Favon to a new building located at Place de Hollande in Geneva, which could, in theory, have double the current workforce.”
How important is corporate financing to the group’s activities?
R.S: This profession is one of the main ones in the group, for historical reasons. BIL not only finances Luxembourg companies of all sizes but also, and for a long time, companies in regions such as French-speaking Belgium, neighboring regions in Germany and France.
What is the size and what are the projects of BIL Switzerland?
L.P: We have 120 employees in Switzerland, including 25 in Geneva, around ten in Lugano, and the rest in Zurich.
We are developing a growth strategy and will indeed hire new professionals in Switzerland. In a little less than a year, we will move from Boulevard Georges-Favon to a new building located at Place de Hollande in Geneva, which could, in theory, have double the current workforce.
And in practice?
L.P: We are in the active recruitment phase. Our objective is to grow organically in both corporate financing and wealth management and independent managers.
In wealth management, the core geographic target is clearly Switzerland, Europe and the Middle East. I note that China is a key trading partner in the Middle East, and the structure of our shareholding can be a favorable argument for clients in this region.
What is the distribution of your income?
L.P: Revenues are distributed evenly between wealth management and corporate financing activities.
R.S: The BIL group is a universal bank in Luxembourg, but BIL Switzerland is focused on the needs of a clientele of entrepreneurs and families, in terms of financing and asset management. I was hired in 2020 to start the corporate financing activities.
The advantage of starting a new business is being able to pursue other paths. We are the only ones in Switzerland to place corporate finance financing and advisory activities (mergers and acquisitions, capital structure, non-bank financing, etc.) at the center of our mandate within a single team. This choice is only relevant if you focus on a clientele of entrepreneurs and families running mid-sized businesses. We deal directly with the entrepreneur/decision maker and we seek to support them over the long term rather than limiting ourselves to the sale of in-house products.
Are you targeting those disappointed with the takeover of Credit Suisse by UBS?
R.S: We had started in corporate financing before this merger, relying on the historical expertise of the bank and our personal contacts. In terms of infrastructure, we have developed from existing systems and know-how in Luxembourg both in IT management and in risk control.
Our Corporate Banking activities focus on corporate financing (acquisitions, investments, commercial real estate) and shareholder structure (family office, investment holding company). Our operations range between 10 and 200 million francs. At the low end, we can intervene alone and at the high end we work with other banks. More and more, we are starting to organize credits and syndicate them.
“We focus on the intermediate segment, that of often very international companies whose needs are too complex for local banks.”
For the Consulting part, our activity covers three areas:
- 1st part: helping our clients find non-bank (institutional) financing, in private debt transactions,
- 2nd part, advice on capital operations (off-exchange), helping to open up capital, for example for the exit of historical minority shareholders,
- and finally 3rd component, offering mergers & acquisitions activity to support clients in the purchase or sale of companies.
L.P: After the takeover of Credit Suisse by UBS, we observed a significant demand for financing using our services due to a reduction in the appetite for corporate credit on the part of large Swiss institutions.
Has this buyout changed the market for third-party managers?
L.P: The impact of this merger also concerns relations with independent managers. The prices were different as well as the computer systems. This sector is undergoing transformation. Opportunities are also emerging for us in this type of service.
Do you bring your balance sheet for granting loans?
R.S: There is sometimes a need for credit that meets our risk appetite criteria, so we finance it either alone or with other banks. But there are also needs that fall outside our risk appetite criteria. So we use our expertise in consulting. Here we will find solutions outside the bank, either from debt funds or from equity investors.
In fact, in general, our clients are entrepreneurial families with little debt. However, they sometimes have projects that require more debt than the banks could accept.
What are your ambitions for 2025?
L.P: We will give ourselves the means to continue the development of our corporate financing and wealth management activities from our offices in Zurich, Geneva and Lugano, in the context of a banking sector which tends to restrict its ambitions.
R.S: Our growth projects are part of a long vision. Among companies, we want to be understood as a reliable and long-term partner.
How do you feel about the situation in your field?
R.S: The cycles are getting shorter and shorter. Our attention therefore focuses above all on the quality of our clients’ management and governance and their ability to adapt. Today, we see exciting growth opportunities in these companies. It also appears that the situation is generally better in Switzerland than in our neighbors.
As for financing, the situation differs depending on the size of the companies. The larger ones are well served by the main local and international establishments present in Switzerland, the smaller ones are very well served by the cantonal banks. We focus on the intermediate segment, that of often very international companies whose needs are too complex for local banks, for example in the case of acquisitions, and often too small for large establishments. Gaps emerge from transactions exceeding 40 million francs. In the case of companies that were clients of the two major banks, it may appear that, when exposure is combined, 1+1 does not make 2. This will result in some companies reducing their investments, due to less supply , or will call on new players.
What services are difficult to find in Switzerland in your niche?
L.P: Few Swiss banking players are capable of supporting real estate projects in Europe, for example. We do this in 11 European countries.
What is your performance in wealth management?
L.P: Our performance history has been impressive in discretionary management mandates for the past five years. In 2024, to date, on a Growth mandate in CHF, the performance exceeds 15%. This activity is based in Luxembourg but three experts are responsible for its replication in Switzerland.
