From a financial advisory firm through the fund of funds vehicle to a more sophisticated brand that also includes real estate and alternative assets, with the ability to target a broader spectrum of clients, such as business families. In this review of Abante’s more than twenty years of activity, Santiago Satrústegui, its president and one of the founding partners, believes that the company is ready to continue its growth and double its current assets (9 billion euros managed and 4 billion assets advised)taking into account the purchases made in recent years) in the next five years, without losing the independence that characterizes the company.
This growth forecast is organic, as Satrústegui detailed this Wednesday in a meeting with the media, since They have no plans to make any further purchases at this time.after the integration in recent years of the Navarrese companies eaf C2 Asesores, 360 CorA (specialized in the real estate sector), Dux and Welzia. Operations that they were able to carry out thanks to the entry of Mapfre in Abante with 20% of the capital, which for the moment does not envisage its expansion.
With the formation of Dux, in addition to the management company and the securities agency, they inherited the technological platform that the Bilbao company had to support the operations of fund advisorswith a volume of 500 million euros. And the intention is to maintain the Dux brand for this activity. “We found it interesting to develop this activity, focused on small and medium-sized companies, even with some with whom we discussed at the time to carry out operations, because it can be interesting to maintain independence but with the support of an independent company like Abante,” explained Satrústegui.
In this way, the platform would be strengthened between small financial advisory firms that need support for their operations, at a time when the costs of the sector have increased due to regulation, without them having to resort to the status of insurance agent. . And on the other hand, it would serve to attract investment professionals who act as fund advisors so that they have the support of a manager. “This is not a project that aims to compete on price to attract agents of financial institutions. It is aimed at professionals who do not want to be in a bank. But being an eaf requires having an agreement with platforms that offer alternatives. And if you are small, it will be difficult for you to be independent, you need a certain size to maintain your independence,” Satrústegui stressed.
However, Abante does not rule out making other purchases in the future, but with companies with a volume between 300 and 500 million euros, because “the most difficult thing is a larger operation because there are fewer and fewer candidates,” explained the company’s president.
Use of AI
Among Abante’s priorities for the coming years, the company considers introduce artificial intelligence (AI) tools that allow you to automate certain processes to gain efficiency with clients and for advisors to have more time for “emotional conversations.” “AI will play a leading role in the coming years and for us it is a fundamental change that can make us lose the opportunity cost. To make projects efficient, they must stop being artisanal in management, but not in the relationship with clients,” said Satrústegui, who recalled that the firm bases its relationship with clients on concern for their life project and not so much on their assets.
“The fundamental concern is to have the focus on your biographical project and Helping clients understand money“Investment funds play an important role, but you get there at the end of the whole story, after you have done the planning exercise, which we now call a comprehensive future plan,” he explained.
This greater automation has meant that this year in Abante they have hired fewer professionals, but “in the future we could increase it again due to the potential offered by the size of the company. Our limit is the growth that allows us to maintain our DNA” said the president of the company.
