Paperjam interviewed François Tesch, former board member of Foyer Finance, and John Penning, CEO of Luxempart, on April 30, 2026, to discuss the upcoming leadership transition within the family holding. On May 6, the board confirmed Penning’s appointment as president of Foyer Finance’s executive committee, effective once a successor has been appointed to replace him as CEO of Luxempart (see chart).
Foyer Finance and its subsidiaries Source: Foyer Finance
To begin, could you provide some background on the group’s history and its current identity?
François Tesch. —“We are a family group that recently celebrated its 100th anniversary. Three generations have been involved and John represents the fourth generation to assume responsibilities within the group. The principal founder was Léon Laval, my grandfather and John’s great-grandfather. As the family grows, there remains a strong collective will to continue the adventure and preserve an active role within the group.
How does your approach differ from other family-owned businesses that might take a more hands-off approach?
F.T. —“That is not our case. We want to remain what the founders were: entrepreneurs who take responsibility, launch projects and develop new ideas while surrounding ourselves with highly competent people.
Historically, each generation has left a strong mark, from Léon Laval to Marco Lambert, who made Foyer a market leader in Luxembourg, to my own role in diversifying the group into a financial firm with two pillars: insurance and investment through Luxempart.
How do you manage the transition between generations and ensure professional standards are met?
F.T. —“You cannot simply ask a family member who wants to be the next CEO. We set up a working group with external advisors to define our long-term objectives, such as maintaining strong operating companies and our role in philanthropy.
We also defined entry criteria for younger family members. They must have specific degrees and experience outside the group because we are not a school. We want to ensure the group is led by highly professional young people.
How do you balance family involvement with the need to attract external talent?
F.T. —“You must define the family’s role, or you will struggle to attract competent external professionals who might feel they cannot deploy their talents if the family controls everything. We want to attract the best, which means delegating decisions and showing trust.
Simultaneously, the external manager must accept that the capital comes from shareholders who grant them enormous responsibility. Turning to governance, it seeks a balance between the interests of the owners and the demanding professional managers.
For instance, the current CEO at Foyer SA, the insurance arm, is Marie-Hélène Massard from France, not a family member, who brings skills not found within the family or even within Luxembourg.
What is the benefit of being a family-owned firm in today’s market?
F.T. —“Foyer is a fitting name because it reflects our culture; we are like a large family, and we are close to our people. Unlike a faceless ‘Société Anonyme’ with thousands of shareholders, we have a face. This fosters trust and reinforces a long-term perspective, especially with the government, as they know there is a Luxembourg resident supporting the management’s efforts.
Yet we also adopt the discipline of a listed company—with audit and remuneration committees and a balance between family and independent members—to ensure we respect minority shareholders. This ‘best of both worlds’ approach allows us to invest for the long term, whereas listed companies are often forced to focus on three-month results.
Could you explain the new mission of Foyer Finance?
F.T. —“Foyer Finance was created in 1990 as a passive entity, but today it must develop its own activity. We are in a geopolitical and scientific environment where change is rapid; business models that lasted a decade can now be outdated in three years.
We have created a management committee where John will be president, joined by my son Owen, vice-president, who brings experience from the private equity world. A third person, external to the family, will eventually join the holding.
The external appointee will be highly experienced, competent and tasked with ensuring the family does a good job, acting as a neutral party in case of sensitive family disagreements as well as representing minority shareholders.
Why was John Penning chosen for this leadership role?
F.T. —“John and I have worked together for 10 years. He has excellent academic credentials, is an entrepreneur with a proven track record, and is of the right age. Having a family member in this role is often better than an external person because John has a shareholding interest. His focus isn’t just a remuneration package but creating long-term value for the whole family.
What will be your role moving forward?
F.T. —“I am leaving the board. I do not even want an office, and I do not want to cast a permanent shadow . Yet I will be an attentive, informed shareholder and a ‘wise elder’ asking questions.
Insurance accounting is notoriously difficult. What attracted you to this challenge?
John Penning. —“You are right; reading an insurance balance sheet is nothing like an operational company or even a bank. However, I joined Foyer SA’s board 15 years ago, and for the last nine years at Luxempart, I have followed Luxempart’s 32% stake in Foyer SA very closely. While I wouldn’t call myself an expert, I have developed a deep understanding of the business.
Our goal for the Foyer Finance executive committee is to be a professional, credible counterpart for our subsidiaries, asking the right questions on trends that may transform the industry in the next three, five or 10 years.
Some investors might see Luxempart’s 32% stake in Foyer SA as making the firm less of a “pure play”, on SMEs. Do you plan to change this structure?
J.P. —“There are historical reasons for this participation. Many of our shareholders appreciate it because Foyer SA is no longer listed, and Luxempart provides them indirect access to this successful company. It also provides regular dividends, which is vital for a permanent capital firm like ours. Additionally, there is a decorrelation benefit: insurance often profits when interest rates are higher, while private equity might suffer more, creating a good mix in the portfolio. However, on the downside, I agree with you—it’s less of a ‘pure play’.
Luxempart chose to invest in SMEs, both directly and indirectly through funds. And while Foyer Finance is a larger group, it’s not a multinational. In many ways—without any negative connotation—it can still be considered a large SME.
Building relationships with other family groups, locally and internationally, has been underdeveloped.
While we could communicate its value better to avoid it being a black box, I have no immediate plans for a separation or sale.
What are the growth vectors for Foyer?
J.P. —“There are many. We have developed new business lines like Foyer Global Health for expats and CapitalatWork and Wealins for wealth management. Wealins is already a leader in the international life insurance market using Luxembourg legislation. Our strategy is to find niches where we can be agile leaders rather than competing head-on with giants like Allianz or AXA.
What about growth beyond Europe for Luxempart and other group initiatives?
J.P. —“Luxempart is strengthening our private equity funds pillar—which represents 25% of our NAV—to increase our exposure to the US market via low-to-mid-cap buyout and growth buyout funds.
Any other group initiatives?
J.P. —“We also created ‘Foyer Finance Avenir’, a third pillar focused on sustainability, innovation, and venture capital. This is led by Benoît, Owen’s brother, and it allows us to build in-house expertise in ecosystems like venture capital.
What areas do you feel have been underdeveloped?
J.P. —“Building relationships with other family groups, locally and internationally, has been underdeveloped. Being a family-owned business gives us a chance to find like-minded people. Such groups abroad are confronted with the same challenges as we are, seeing the same opportunities, and looking to diversify through partnerships, in private equity, for instance.
We also need to orchestrate more internal synergies. Different divisions of the group manage cash and investments in silos; we can find easy efficiencies by simply getting people to speak to each other in a more disciplined fashion.
What are the biggest risks facing the group?
J.P. —“The biggest risk is becoming complacent or assuming current success will last forever in a fast-changing world. We must be proactive and anticipate trends rather than just reacting. Another risk is losing family cohesion or the younger generation losing interest. As the family grows and members move abroad, we must have a real approach to keep everyone informed and engaged.
Would you ever consider consolidating with a larger international group?
J.P. —“Being an independent family group is a strength that our clients value for its stability and set of values. I have no desire to dilute what we have into a larger, anonymous entity.
F.T. —“However, we have a culture of questioning ourselves. If we ever noticed, we were no longer the ‘best owner’—perhaps because we were too small to remain competitive—we would have to consider those options. But currently, our results and the services we provide suggest we still generate significant value. Our family identity is a selling point when we associate with other entrepreneurial families who share our values.
The exchange highlights a group balancing tradition and renewal as it prepares for its next generation of leadership.”
