Private Markets Guide 2021/22 (SECA (Swiss Private Equity and Corporate Finance Association))

Summary

• SECA has a membership base of more than 600 members, including investment companies, banks, corporate finance advisors, and private investors.p.2
• The market capitalization of all publicly listed companies stands at USD 95'000 Milliarden, roughly 14x larger than the private market.p.10
• Global private markets offer nearly USD 7'000 Milliarden in total investment opportunities.p.10
• Major global institutional investors maintaining private market target allocations around 20% generate average annual returns of 10%.p.14
• SECA recommends a target private markets allocation of 6-10% for long-term institutional investors in Switzerland.p.14

Key insights

1. Private Markets serve as an overarching term for capital investments that are not publicly traded on an exchange.p.10
2. Private Equity splits into Buyout, focusing on existing firm development, and Venture Capital, focusing on startup funding.p.12
3. Private market investments lack standardized replicability, requiring investors to find individual assets corresponding to planned investment sizes.p.12
4. The Limited Partnership under Anglo-Saxon law is the primary fund structure used for private market institutional investments.p.13
5. Switzerland is a major global hub for the private markets industry, housing key international and domestic asset managers.p.15
6. The 10th edition of the Swiss Venture Capital Report is set for release on 27. Januar 2022.p.110