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Opalesque Industry Update - Private markets are developing rapidly worldwide and are becoming increasingly important as a source of capital for companies and investors. In Switzerland, asset managers already manage around CHF 360 billion in private market investments such as private equity, private credit and private infrastructure. The study 'Private Markets in Switzerland: Scaling Innovation & Growth' by the Asset Management Association Switzerland (AMAS), the industry association SECA and BCG illustrates the potential of this booming asset class. Over the past two decades, private markets have expanded rapidly, with assets under management (AUM) of private equity growing 15-fold between 2003 and 2023, while public equity markets have shown a threefold expansion. While public equity markets are still substantially larger, with market capitalization of USD 112 trillion, AUM in private equity have reached USD 11 trillion.
Switzerland as an important player Of the CHF 360 billion managed in Switzerland, the majority is attributable to private equity (CHF 260 billion), followed by private credit and infrastructure investments (CHF 50 billion each). Swiss asset managers are strongly export-orientated: 75% of private market investments under management come from foreign investors. The main investors in Switzerland are pension funds, insurance companies, banks and family offices. The latter are gaining in importance as private investors are increasingly investing capital in private markets. The study identifies five key areas for action to better leverage the potential of private markets in Switzerland: 1. Support companies: Switzerland should create a competitive environment that supports companies from start-up to global expansion. 2. Attract investors: A clear regulatory environment and a strong local talent pool could establish Switzerland as a top destination for private market investors. 3. Strengthen institutional commitments: pension funds and insurers should invest more in growth financing and utilise participation opportunities to secure sustainable returns. 4. Further develop wealth management: Swiss wealth management expertise could channel global capital flows into private markets more efficiently. 5. Optimise the regulatory environment: A transparent and efficient regulatory framework is crucial to attract global investors and enable broader access to private markets. Private markets offer Switzerland a unique opportunity to promote economic growth, innovation and jobs. At the same time, they strengthen the country's role as a leading financial centre in a changing global landscape. With a targeted strategy, private markets can become a mainstay of the Swiss financial centre. Access study here: Article source - Opalesque is not responsible for the content of external internet sites |
Industry Updates
Swiss asset managers are key players in private markets segment
Thursday, February 06, 2025
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