As part of our partnership with Swissnex China, our ambassador Loïc de Prado met HEC Lausanne alumnus Yann Poirier to discuss his unusual career path, from Paris to Shanghai, via Lausanne and Tanzania. Discover the second part of their interview.
After your two years at HEC Lausanne, how did your career develop?
Investment banking seemed a natural fit with what I liked to do, wearing both my financial and entrepreneurial hats. So I set up a small structure with a friend to do mergers and acquisitions, but in 2008, the financial crisis hit. I couldn't see myself staying in that situation, and I told myself that my professional life wasn't over yet, and that I had to get out of my comfort zone.
You became a corporate banker, advising companies on their external growth and financing. How was your past failure perceived in the professional world?
I'd been quite visible with the Moringa project, there had been articles and I'd given lectures. I didn't hide this failure, which I saw more as a learning experience. I may have lost some prospects, but I've never had to deal with scorn in a professional capacity. I didn't feel the need to leave Switzerland for these reasons; it was the economic situation and a change in my personal life that prompted me to leave.
In 2009, you decided to leave Switzerland and move to China. What motivated you to choose this destination?
I wanted to go to the United States, but a friend of mine told me I should take a trip to China, because it was so dynamic. At the time, I knew nothing about China. So I went there, and with my entrepreneurial spirit, I instinctively asked myself what I could do there. I discovered Shanghai, which I loved, and signed a 2-year lease the day after my arrival.
What was your first activity in China?
My first assignment in China was to liquidate companies acquired by an Italian fund. In 2010, with the Italian financial crisis and the need to recapitalize the banks' equity, I had to sell the fund's holdings to repatriate the funds. Some of the suppliers of the companies I had to liquidate noticed my approach and asked me to help them raise money afterwards. The growth of Chinese companies was phenomenal at the time, and banks weren't equipped to lend money. Investors had to be found who were willing to contribute capital and become shareholders. That's when I set up my first company, SwissFi.
In 2013, following on from SwissFi, you launched Investment Partner. With this new company, you're taking on an international dimension. Can you tell us about its activities?
Investment Partner allows me to move up a gear. Initially, our M&A activities were concentrated mainly between China and Europe, but we have since expanded our international network.
We currently have 25 mandates in completely different fields, including wind power, agriculture and cosmetics. What sets us apart from other M&A companies is that we have a real presence in China, with a local office and a strong team. Secondly, we have our own CRM system that manages our database and deals, and enables us to matchmake between mandates and potential investors on the basis of their past investments. Finally, we have a Partner program that enables us to remunerate people who bring us deals.
As an M&A firm, I imagine you've been able to identify market trends based on the number and direction of transactions. What observations have you made about the evolution of the Chinese market?
In the past, European companies invested in China, considered the world's leading economy. Since COVID, the trend has reversed. The country's wealth creation remains unique, but the huge domestic market promised over the past 15 years, thanks to a growing middle class, is stagnating. This situation is driving successful companies to seek opportunities abroad, particularly in Europe. A major difference is the growing involvement of Chinese SMEs in this international diversification.
There had already been massive takeovers of European companies, including several flagships. Isn't there a growing fear and protectionism on the part of European countries towards these massive Chinese takeovers?
The Chinese have lost credibility in these transactions. Some acquisitions have been successful, but others have been marked by abuse and inappropriate behavior. For example, the acquisition of French vineyards by the Chinese would no longer be possible today. Many Chinese wine lovers tried their luck, but many disappeared without a trace. Some investments were motivated by prestige, but faced with culture shock and financial problems, they failed in their responsibilities.
What were the most dynamic areas for mergers and acquisitions?
There are clear cycles in China, as indicated in the country's five-year plan. So it's easy to follow trends such as logistics, robotics and all the tools that can improve their production and add value to their products. When I started out, it was everything that improved and drove consumption that was in demand.
We hear that it's sometimes difficult to do business with the Chinese and that networking is essential. What have your experiences been?
Despite warnings about the complexity of negotiations and the business that supposedly relies on "Guanxi" (relationships), my 14 years of experience show that this is not entirely true. Most are pragmatic, make quick decisions and favor consensus in contracts. I once found myself in court when I was winding up a company, and the judge asked us if we were sure we hadn't managed to find a solution before going to court. Working with them wasn't very difficult, because once they understand their interests, we're all moving in the same direction.
Do you have an anecdote to tell about the creation of your company or your professional life in China?
Yes, my first contract with the Chinese. One day after signing a contract for an acquisition, the Chinese lawyers called to tell me they'd changed a page in it. I found this pragmatic, because it proved what I'd been saying: the contract is the start of negotiations in China.
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