International business seems to be a historical pillar for LCL. How has this expertise been structured over time?
For us, international business isn’t a trend; it’s a reality that dates back to the founding of Crédit Lyonnais in Lyon in 1863 by Henri Germain. By the 1880s, the bank already had a global footprint with branches in London, Madrid, St. Petersburg, and Alexandria, supporting France’s commercial expansion worldwide. After integrating into the Crédit Agricole Group in 2003, LCL refocused on the domestic market while remaining true to its core vocation: serving the national economy and acting as the bank for businesses that dare to go global.
Five years ago, we took a major step by bringing our experts together under a single management structure divided into two branches: Trade Export and International Coverage, to increase our visibility and firepower. My team is made up of multilingual bankers who manage relationships with foreign groups operating in France. This is a crucial segment when you consider that one in four mid-cap companies in France is now controlled by a foreign parent company.
You have been partnering with Altios for nearly ten years. What is the operational track record of this alliance?
It is a major success built on total complementarity. Altios provides solutions right where the banker’s role ends: market entry studies, local talent recruitment, and the operational management of subsidiaries. Over the past decade, we have introduced more than a thousand companies to Altios. The most telling figure is our satisfaction rate: 60% of the services provided are contract renewals by already convinced clients.
But the real crown jewel of this partnership is buy-side M&A. Altios has developed a rare expertise in identifying and approaching strategic targets for foreign expansion – in the US, Poland, Italy, and Spain, among others – on behalf of our clients. This know-how turns external growth projects into a reality for companies that couldn’t pull it off alone.
What are the major obstacles facing mid-market executives globally today?
Global business is the major leagues: it is a highly demanding arena where there is no room for approximation. The challenges are manifold. First, geopolitical instability: you no longer choose a country solely for its growth potential, but for its long-term stability. De-risking has become the watchword in the face of tensions in Ukraine and the Middle East, ensuring continuity in the supply chain.
Next is the dual transition – ecological and digital. Between the CSRD directive, the Carbon Border Adjustment Mechanism (CBAM), and the constant threat of cyberattacks, companies must invest heavily in traceability and security.
Finally, the human dimension, which is often the make-or-break factor in a project: knowing how to recruit the right local manager and navigate cultural differences is a critical skill. A cultural failure can prove just as costly as a financial one.
Do you have examples where international expansion turned out to be more complex than anticipated?
Going global always comes with the unexpected. I have seen groups succeed brilliantly in France but fail in China because they were copied by more agile local players before they could establish themselves. I have also seen companies burn out in the US because they hadn’t anticipated the sheer scale of the initial upfront investments required (salaries, distribution costs) before breaking even.
A simple piece of advice for executives: do not venture abroad until the parent company’s financial health is rock solid. International expansion requires sustained resources over time. That is why it is essential to lean on the entire ecosystem at your disposal: public entities like Bpifrance and Chambers of Commerce, as well as private partners like banks and Altios, all to de-risk every step of the journey.
People often think that global expansion is reserved for Fortune 500-type giants. Is that really the case on the ground?
Far from it. France has a genuine flair for economic expansion abroad. Today, there are 56,000 French subsidiaries operating worldwide, employing 7 million people and generating over €2.4 trillion in revenue. While large corporations carry a lot of weight, the 7,000 French mid-cap companies are the true engine of this momentum: they alone account for 30% of national exports, with an average export rate of 20%. Some niche SMEs even generate up to 80% of their revenue beyond our borders.
As a banker, do you ever have to hit the brakes on certain ambitions?
Going global is an incredible challenge, but it’s an adventure that requires strict discipline. Our role is sometimes to say “no” or “not right now.” We may decline projects for two main reasons. The first is regulatory: we do not compromise when it comes to sanctioned country lists i t is a vital protection for both the bank and the company. The second is financial maturity: expanding too early, without the financial backbone to support it, is risky. Setting up a physical footprint abroad is a qualitative leap from direct exporting – it allows you to cut out the middlemen and bypass trade barriers, as we see in the US to avoid certain tariffs – but it demands a financial structure capable of absorbing the initial CAPEX.
So, the global journey is primarily about preparation?
Exactly. A successful internationalization is a project where the risk has been carefully weighed and is under control: competent management, prior export experience, and solid backing from the ecosystem – export insurance, Bpifrance, Altios, and of course, the company’s core bankers. When everything is properly structured, risk transforms into an extraordinary growth opportunity.
International business is like Monsieur Jourdain’s prose: you generally do it without realizing it (procurement, sales, new developments). But successfully establishing a dominant position abroad is the ultimate proof that you are better than the competition. At LCL, our philosophy is to support these projects so we can play in the business Premier League together. So, let’s move forward!
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