“The market didn’t always understand everything we were doing because they’re different brands,” explains Nicolas Buck. “Clients want to consolidate their operations with larger service providers.” The merger of Avanterra, Palana and Palana Services is not merely a capital tie-up. It forms part of a broader trend towards the restructuring of the financial services market in Luxembourg, characterised by increasing regulatory constraints, growing cost pressures and a rising demand for integrated services.

This merger is, in fact, part of a journey that began several years ago. It traces its origins back to a regulatory reporting service launched in 2012 under the banner of Victor Buck Services, which later became Seqvoia before being rebranded as Avanterra in 2022. This initial foundation now forms the technological backbone of the group. At the same time, Palana was established in 2021 with the Collette brothers to develop a compliance consultancy business, whilst Palana Services was set up to organise operational activities, particularly in the areas of reporting and AML. An initial step towards consolidation had already been taken in 2023 with the creation of an umbrella structure, Palantera, bringing the three entities together under a single ownership structure.

In practice, the new group comprises around 120 employees and generates turnover of just over €20 million, with annual growth of nearly 30%. Its offering is now structured around three business lines: operational services, consultancy and technology.

“There is increasing regulatory complexity on both sides, as well as cost pressures,” notes Nicolas Buck. “So there is a long-term trend towards outsourcing, but to providers with regulatory expertise.” The regulatory burden is structurally higher than it was five years ago and continues to grow, particularly as a result of legislation such as AIFMD II, Dora and ESG requirements.

A promise: technology + regulatory expertise

The new group’s positioning is based on a claimed dual expertise. “What we’re selling is the combination of technological and regulatory expertise,” explains Nicolas Buck. “We’re not just regulatory experts, but we’re not just technological experts either.” This combination is presented as a differentiating factor in a fragmented market. “Clients are looking first and foremost for regulatory expertise. It’s like going to the doctor – you want to see a specialist!”

The merger also responds to a structural shift in demand. “Even though it’s owned by the same shareholders, it doesn’t have the same scale and doesn’t generate the same synergies,” he explains. “We needed to create a brand and a company, a sense of unity.”

The four co-leaders are the brothers Benjamin and Bastien Collette, Nicolas Buck and Renaud Jamar. This decision is not presented as a mere balance of power between partners, but as a fundamental element of the project. “It’s a model I’ve always believed in,” says Nicolas Buck. The merger should make it possible to eliminate parallel administrative structures, unify governance and redirect more resources towards delivering services to clients. The project is not built around a single figure, but around a collegial leadership structure. “Moreover, a governance model isn’t about a CEO; it’s about four people making decisions together.”

In this landscape, Palana positions itself between the major international firms and a host of specialist firms. “We compete with the Big Four in certain business lines, but not in all of them,” explains Nicolas Buck. “And there are also many other players.”

Artificial intelligence as a driver of productivity

One of the key priorities for the new group is the integration of artificial intelligence into its processes. “For the first time, AI is a technology that will genuinely make us more productive,” says Nicolas Buck. “The key is that our software must be able to communicate with an agent based at the client’s premises.” In practical terms, this means a shift towards interconnected architectures capable of integrating directly into clients’ automated processes. The group plans to make significant investments in this area.

Beyond technology, the main constraint remains human. Nicolas Buck highlights this tension: “You can’t say you want to be an expert and at the same time claim that such experts can be found anywhere. It has to remain difficult, because that’s a competitive advantage.” The group is therefore considering nearshoring solutions to broaden its access to skills. “We’re looking at centres in areas where labour costs are lower,” he explains, citing European university towns in particular.

Even though “the only real cluster in Luxembourg is the cluster of service providers serving the financial industry,” he says. “There are hundreds of companies: lawyers, the Big Four, other players like us (…) That’s what attracts businesses: there’s competition, so there’s choice, so there’s business.”

The merger is presented as a step forward, not an end in itself. “We want to grow much further still,” says Nicolas Buck. And to become “a leading player for regulated entities in Europe”, by focusing on international expansion, technology and deepening client relationships. In a market where complexity is constantly increasing, the strategy seems clear. “Complexity isn’t going to disappear,” concludes Nicolas Buck. “We want to be the partner that grows alongside our clients.”