SECA Yearbook 2019 (SECA (Swiss Private Equity and Corporate Finance Association))

Summary

• The estimated $757 billion fresh commitment flows to private capital worldwide in 2018 stands 18% below 2017's record fund raising of $925 billion.p.9
• Over CHF 1.2 billion was invested into Swiss early stage and growth companies in 2018, marking a record year for the industry.p.9
• A total of CHF 1.24 billion flowed into Swiss start-ups in 2018, representing a 31.8% increase compared to CHF 938 million in 2017.p.19
• The number of financing rounds in Switzerland grew from 175 in 2017 to 230 in 2018.p.19
• Funding raised through Initial Coin Offerings in Switzerland dropped from USD 728.2 million in 2017 to CHF 233.5 million in 2018.p.20

Key insights

1. The average private equity fund returned over 5% in 2018, while public market indexes recorded double-digit annual declines.p.9
2. Buy & Build transactions involving small platforms generated an average gross IRR of 52.4%, outperforming stand-alone deals at 20.3%.p.23
3. Small private equity funds below CHF 500 Mio. will face regulation as asset managers under the new Financial Institutions Act.p.28
4. Information and communication technology replaced life sciences in 2018 as the top investment sector by capital in Switzerland.p.48
5. Twenty Swiss start-ups accounted for approximately 60% of total venture capital investment in 2018, receiving CHF 688 million.p.48
6. Swiss pension fund managers oversee around CHF 750 billion in assets, mostly allocated to real estate and bonds.p.54