Talks at GS – Virginie Morgon: A Global Outlook on the Future of Finance

Leadership and Corporate Strategy

• Virginie Morgan is scheduled to assume the role of CEO of Eurasio (a European-based private equity firm) in March.
  • She currently serves as Deputy CEO of the firm worldwide and President/CEO of Eurasio North America.
• Eurasio is pivoting from a France-centric, continental European identity to a global strategy to remain competitive.
  • The firm expanded outside France starting in 2010, establishing direct investments in Italy, the UK, Spain, and Switzerland.
  • Morgan asserts that expanding the US franchise is a necessary strategic decision to support the companies in which they invest, rather than a preference-based move.
• Morgan's operational philosophy involves "getting out of the comfort zone" and starting from a "blank piece of paper" for every new venture.
  • This approach mandates reshuffling investment assessment and due diligence processes annually rather than relying on legacy methods.

Macroeconomic Outlook and Risk Assessment

• Morgan maintains a positive outlook for the global economy in 2018, specifically citing growth drivers in Europe, China, and the US.
  • She anticipates continental European growth (excluding the UK) to reach between 1.5% and 2% for the upcoming year.
  • Specific growth is expected in France, Italy, and Spain, marking a shift from the post-2009 stagnation period, driven partly by renewed confidence following the French presidential election.
• While acknowledging short-term optimism, Morgan identifies late 2019 as a potential period of crisis or risk.
  • She notes that while current portfolio companies do not show immediate distress signs, the broader consensus among business leaders points to late 2019 as a vulnerability window.
• Morgan expresses skepticism regarding the narrative that globalization is the sole cause of social inequality.
  • She argues that business leaders have failed to convincingly explain that the "left behind" are often marginalized for reasons beyond globalization.
  • She emphasizes the difficulty of persuading populations that the consequences of globalization are not entirely negative.

Corporate Culture and Diversity Initiatives

• Morgan defines success as the accumulation of the power to effect change, both within an organization and through external impact.
  • She identifies personal time as a more valuable asset than financial comfort, citing her commitment to causes like Human Rights Watch as a measure of success.
• Morgan advocates for proactive networking and visibility as critical career accelerants for women, which she feels are often deprioritized due to family responsibilities.
  • She asserts that organizations with gender diversity are significantly more efficient and performant than those without.
• Morgan supports the global wave of women speaking out against sexual harassment as a crucial step toward workplace safety.
  • She highlights the removal of fear regarding job loss or shame as a prerequisite for cultural change.
• Eurasio's strategy for building an inclusive culture involves both high-level strategic mandates and daily operational enforcement.
  • Strategic Level: The firm mandates gender equality in pay, board representation, and executive committee access.
  • Operational Level: Morgan requires at least one female candidate for every hire and cancels meetings if no women are present for interviews.
  • Enforcement: She commits to immediately intervening with improper comments made during meetings or in informal settings (e.g., the coffee machine) to prevent the normalization of disrespect.

Professional Ethics and Personal Philosophy

• Morgan cites a pivotal experience from her early career at Lazard as her most significant piece of professional advice.
  • At age 24, she witnessed a senior partner being humiliated by an even more senior figure after she had waited over an hour for their attention.
  • She resolved then to never allow herself or others to be treated with such disrespect, establishing a career-long standard for self-respect and decency.
  • Her core ethic is that respecting oneself is the fundamental requirement for earning respect from others.