Decades of Financial Excellence: Marco Paternò Castello Explores CFE Finance Group’s journey and growth strategies in a recent interview.

Back in 2001, our journey began when our visionary entrepreneur, Mario Cordoni, laid the groundwork for CFE Finance and little did we know that it would evolve into an extraordinary saga in the world of independent finance. We started as a consultancy specializing in export credit financing, supported by the unwavering backing of UBI Banca, one of Italy’s esteemed banking institutions. Over the years, we transformed into a true independent investment manager, boasting a net worth of €60 million and multiple offices across Europe, making us a significant player in diversified investments.

Our focus on trade finance, structured finance, and corporate consultancy led to an extraordinary surge in activity. Since our establishment, we’ve orchestrated trade finance transactions exceeding €3.5 billion and tailored securitization operations totaling over €1.5 billion, all aimed at serving our institutional and professional investors.

What sets us apart is our independence, with 95% of our capital held by our dedicated managers. We are not just a financial boutique; we are passionately committed to actively seeking opportunities in the real economy and nurturing an entrepreneurial spirit. Our philosophy encourages visionary thinking and proactive investment strategies aimed at preserving capital and fostering sustainable long-term growth.

As we celebrated our two-decade milestone in 2021, we embraced a new era marked by strategic investments. These moves include ventures into entities such as Luxembourg Fund Services SA, a specialized PSF with promising growth prospects; River Merchant Capital Ltd, a regulated investment company managing a fund distinguished by robust investments; TechStar Srl, an innovative start-up in the realms of the metaverse and artificial intelligence; and RiverRock, a renowned alternative investment firm in Europe.

Luxembourg has always been a strategic hub for us. Through our top holding company, Corporation Financière Européenne SA, established in 2001 with a capital of €20 million, we manage our treasury and structure the finances and investments of the group. Since 2019, we’ve expanded our services through our subsidiary, CFE Advisory Services, providing consulting services for corporate structuring and financial products.

Our investment in Luxembourg has further deepened with our expansion into fund services, culminating in the 2021 investment in Luxembourg Fund Services SA. This esteemed fund and corporate service provider, holding the status of PSF (Professional of the Financial Sector), is supervised by the Luxembourg financial sector regulator, (CSSF). Luxembourg Fund Services, an independent company founded in 2011, specializes in services related to both regulated and non-regulated investment funds, offering a wide range of services, including central administration, transfer agency, domiciliation, tax and accounting for funds and investment companies based in Luxembourg.

This strategic investment empowers us to enhance our offering of consulting services for businesses, reaffirming our ambition to become a reference player in this sector. Our goal is clear: achieve this through both organic growth and external initiatives, participating in the consolidation of the target market in the medium term.

The transformative move in April of this year, with the acquisition of RiverRock, a prestigious London-based boutique, added another layer to our strategic expansion. RiverRock, authorized and regulated by the Financial Conduct Authority (FCA) in the UK and by the Autorité des marches financiers (AMF) in France, stands among the leaders in the European alternative fund sector. RiverRock offers numerous investment strategies through its Luxembourg-based alternative funds, strengthening our position and expanding our offering of financial instruments.

Importantly, our commitment remains steadfast to supporting the real economy and entrepreneurial reality, where Environmental, Social, and Governance factors play a fundamental role in our investment selection process.

As we look ahead to a radiant future, our aim is not just to consolidate our position in the financial market but to be an active catalyst in organic growth and mergers within the sector. Our dedication to actively seeking opportunities and promoting entrepreneurial spirit remains the driving force behind the success that has characterized our two-decade journey. At CFE Finance, we’ve laid the groundwork for a radiant future, with Luxembourg guiding us as we manage our products and develop bold innovative projects.