Private Markets in Switzerland – Trend or True Diversification?

In a world of persistent macro uncertainty and volatile public markets, investors are increasingly looking beyond traditional asset classes. One area receiving growing attention is Private Markets – particularly Private Equity and Private Debt. Once reserved for institutions and ultra-high-net-worth individuals, these strategies are now becoming more accessible to a wider range of affluent investors, including those with smaller fortunes.

But is this a passing trend – or a meaningful diversification opportunity? And what role can Swiss independent wealth managers play in navigating this evolving space?

1. Private Markets: No Longer Just for Billionaires

Thanks to structural changes in the investment industry, access to private assets has broadened significantly:

• Feeder funds, semi-liquid vehicles and tokenized instruments now enable participation in private equity and debt with minimum investments starting in the low six-figure range.
• Swiss and international asset managers are increasingly offering customized access vehicles, particularly for clients seeking long-term wealth preservation.
• Regulatory frameworks in Switzerland support this evolution. FINMA’s  approach is to strike a careful calibrated balance between high investor protection standards and fostering innovation and market access through principle based, risk-sensitive framework.

2. Key Considerations: Liquidity, Valuation and Risk

While the appeal of uncorrelated returns and attractive yields is clear, investors must approach private markets with open eyes:

• Liquidity: Private equity and debt investments are typically long-term (5–10 years or more). While secondary markets are improving, liquidity remains limited.
• Valuation Transparency: Unlike listed equities, private assets are not priced daily. Investors rely on periodic NAVs (Net Asset Values), often with delays.
• Risk Assessment: Credit quality in private debt, sponsor strength in private equity, and the legal structure of the vehicle are crucial. Due diligence is essential.

A well-informed investor should see private markets not as a replacement for traditional assets, but as a strategic complement.

3. The Role of Independent Swiss Wealth Managers

Switzerland offers a unique advantage: a well-developed financial ecosystem combined with neutrality, regulatory clarity, and global connectivity. This makes it an ideal hub for private market access.

Independent wealth managers:

• Curate high-quality private market solutions, often from boutique or specialized managers not available to the public.
• Provide independent due diligence and monitoring, beyond the marketing materials.
• Tailor allocations to individual risk profiles, wealth planning goals, and liquidity needs.

In other words, they act as a bridge between the private asset universe and the investor’s long-term strategy.

Conclusion: Beyond the Buzzword

Private Markets are more than just a trend. For those with the right time horizon and a solid advisory partner, they represent a real path to diversification and value creation.

Switzerland, with its depth in asset management and culture of discretion, is well positioned to lead the way – not just for billionaires, but for all discerning investors ready to think long-term

At Baltrag AG, we offer a broad range of private market opportunities, and our clients benefit from exclusive access to this platform, where we can ensure that all due diligence has been conducted thoroughly and reliably.