Private Equity - Switzerland

Switzerland

The deal value in the Private Equity market is projected to reach €1.78bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 3.37% resulting in a projected total amount of €1.84bn by 2025.
The average size per deal in the Private Equity market amounts to €26.53m in 2024.
From a global comparison perspective it is shown that the highest deal value is reached in the United States (€545,100.00m in 2024).
In the Private Equity market, the number of deals is expected to amount to 80.71 by 2025.

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Analyst Opinion

The Private Equity market in Switzerland is facing a minimal decline, influenced by factors such as cautious investor sentiment, regulatory challenges, and fluctuating global economic conditions, which have led to a slowdown in deal activity and capital deployment.

Customer preferences: In Switzerland, private equity investors are increasingly focusing on sustainable and socially responsible investment opportunities, reflecting a broader consumer preference for ethical and environmentally conscious practices. This shift has been influenced by a growing demographic of millennials and Gen Z investors who prioritize sustainability in their decision-making. Additionally, the rise of tech-savvy startups embracing green innovations has attracted private equity funds, aligning investment strategies with evolving lifestyle choices that emphasize eco-friendliness and social impact.

Trends in the market: In Switzerland, the private equity market is increasingly gravitating towards sustainable investments, with a notable rise in funds targeting green technology and social enterprises. This trend is underscored by a shift in investment philosophies, emphasizing environmental, social, and governance (ESG) criteria. Institutional investors are prioritizing portfolios that align with the Sustainable Development Goals, resulting in a more diverse range of funding opportunities. This evolution is significant, as it not only addresses the concerns of a socially conscious investor base but also enhances overall market resilience and competitiveness for industry stakeholders.

Local special circumstances: In Switzerland, the private equity market is shaped by a strong focus on innovation and research, bolstered by its prestigious universities and a skilled workforce. This landscape fosters collaboration between private equity firms and startups, particularly in biotechnology and cleantech sectors. The country's stable regulatory environment, coupled with a commitment to sustainability, attracts international investors seeking ESG-compliant opportunities. Additionally, Switzerland's cultural emphasis on corporate responsibility and sustainability encourages firms to adopt socially conscious practices that resonate with investors and consumers alike.

Underlying macroeconomic factors: The performance of the private equity market in Switzerland is significantly influenced by macroeconomic factors, particularly central bank policies and interest rates. Low interest rates typically enhance the attractiveness of leveraged buyouts, as cheaper borrowing costs enable private equity firms to finance acquisitions more effectively. Furthermore, a stable economic environment fosters investor confidence, leading to increased fundraising capabilities for private equity firms. Global economic trends, such as trade dynamics and investor sentiment, also play a critical role, as they impact valuations and exit opportunities. Ultimately, these financial indicators shape the overall health and growth trajectory of the private equity market in Switzerland.

Methodology

Data coverage:

The figures are based on deal value, number of deals, the average size of each deal, and assets under management within the Private Equity market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, and publicly available databases. In addition, we use relevant key market indicators and data from country-specific associations, such as: GDP, total investment (% of GDP), household wealth (per Adult), high income (% of population), and number of high-net-worth individuals (HNWI). This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are total investment (% of GDP), household wealth (per Adult), number of high-income persons, and number of high-net-worth individuals (HNWI).

Additional notes:

The market is updated twice a year in case market dynamics change.