The story of Álvaro de Remedios (Madrid, 1968) is a story of boldness. I spent 
some time reading the main landmarks of his firm, Arcano, which he created in 2003, and I found a recurring word: “first.” It is also a story of independence, another word that permeates his firm’s trajectory.
Back in 2003, De Remedios was working as head of investment banking at Deutsche Bank in Spain. He was married and a father of four kids. He was satisfied with his professional position and he and his family enjoyed a comfortable life. Despite all this, he decided to take the risk and left what many considered a dream job. He was 35 at the time.
“My father used to tell us that we should strive to control our future,” explained De Remedios over a Starbucks coffee last Wednesday morning. “That message has always stayed with me.”
He took the risk because he saw a clear opportunity: in the post-dot-com era the big investment banks were reducing staff and focusing on the big companies, leaving the SMEs unattended. De Remedios wanted to establish an independent advisory firm that would target this segment of the market.
He started working alone. It was just him and his computer. One month later, his wife got pregnant with their fifth kid. His thinking then was, “What’s the worst thing that can happen to me? going back to a big bank?” But his idea was bright and had its public and demand. Very soon, five more entrepreneurial bankers joined him in the venture.
The idea was to build a real partnership. “In a sector where talent is the essential component, I don’t believe in a majority shareholder,” he explained. “We need to have a base of talented people who feel that the business is theirs.”
It is important to grasp De Remedios’ business vision and values because these are the key of his firm’s extraordinary success. What characterizes the partners at Arcano is their independence, entrepreneurial spirit, team work capacity and inquisitive mind. “And we all do things that go beyond our own personal benefit,” he concluded.
A good example of this latter trait is the report A Case for Spain, which Arcano published around three weeks ago. Authored by Ignacio de la Torre (a partner with the firm and a bright Spaniard that deserves another profile in this blog), the report leads to a double conclusion: (i) Spain’s deficiencies have been greatly exaggerated by both the markets and the financial press and (ii) there are growing strengths that should encourage investors to invest in the country.
“Ignacio spent two months researching and writing this report, which doesn’t have an immediate profitability to Arcano,” De Remedios explained to show their compromise with the situation. “But we thought it was important to produce it as a good contribution to the current moment.”
How De Remedios decided to name the firm shows his openness to the ideas of others. His wife suggested him to call the business Arcano, in memory of a beautiful beach club in Mexico’s Pacific coast, and he thought a “why not.” This openness (alongside his partners’ strategic vision) has led him to successfully expand a business that started exclusively as an M&A advisory firm, “Arcano Corporate”. In 2006, it registered with the Spanish financial markets regulator the first truly international private equity fund of funds and became the first Spanish independent financial firm to open an office in New York. In 2007, it launched “Arcano Wealth Advisors” to advise Spanish family offices. In 2010, it became the first firm to register with the Spanish financial markets regulator as “Independent Nominated Advisor” to operate in the so-called Alternative Stock Market.
Between Madrid and New York, Arcano offers asset management services competing in an international market. The division is currently managing around €1.2bn. I asked him how they win the battles against the international leading giants. “We are smaller, younger, more imaginative, flexible and agile,” he said. “Our value proposition is to offer our network of institutional investors our expertise in investing in North American, European, Latin American and/or African funds.”
A few sound statements
“In the 10 years I spent developing my business I never saw a public institution or system encouraging me in any way.”
“The current government has more educated and experienced office-holders, although the pace at which the necessary measures are being introduced is not optimal given the harsh situation of our economy”
“My biggest concern is the pervasive pessimism.”
“The best thing you can do is to surround yourself with people better than you.”
