Private Equity
Private Equity-Investment
Added value for the swiss economy as a whole.
What is
Private equity?
Private equity investments create added value for our overall economy. This is because this form of investment in specialised companies contributes to maintaining and advancing Switzerland’s high technology and pharmaceutical standards. Nordstein acts as an intermediary between specialised companies seeking capital and potential investors. With in-depth expertise, we bring profit-oriented investors and promising target companies together. In the process, private equity investments are brokered in compliance with all important corporate governance standards and ethical principles.
What private equity is
The term private equity investment refers to the direct, i.e. off-market, acquisition of company shares, usually with the aim of reselling them at a later date. From the perspective of a company seeking capital, private equity financing is a sensible and recognised alternative method of raising capital. Numerous companies don’t yet meet the requirements for listed trading of their shares or want to avoid the costly path of a stock exchange listing. Nor do they want to consider borrowing capital, for instance by means of expensive bank loans. Private equity capital offers these companies new opportunities for further development and growth, while private equity investments give investors exclusive access to the growth potential of attractive unlisted companies.
Private equity – an investment in the future
Nowadays, private equity investments are a recognised and established investment instrument for professional and institutional investors as well as wealthy individuals. Individual risk profiles play a key role in the decision-making process, which is why Nordstein AG’s advisory services treat the assessment of investment opportunities and risks with particular care in the brokerage process. With expertise and experience, our advisors pave the way for investors into the world of the booming private equity marketplace. Over the past five years, trillions of US dollars have flowed into private equity investments worldwide, and even stronger growth is forecast in coming years. In the Swiss venture capital market, the life science sector is currently standing out from the many other sectors with strong growth figures. With a keen sense of the market, Nordstein has positioned itself well for the future of private equity investments with its focus on the medical technology, biotechnology and pharmaceutical sectors.
Direct investment in companies
Direct investment in companies via private equity not only offers well-capitalised investors the opportunity to participate in the potential of unlisted companies. There is also the option in some cases of participating directly in the target company’s strategy implementation and process optimisation – of supporting it and thus generating added value. Private equity investors make a significant contribution to Switzerland’s diverse business landscape and strong national economy by providing entrepreneurs with the resources they need to establish, build and grow their companies. As an important pillar of corporate financing, private equity investments are thus a benefit for the entire market economy.
Advantages for investors
Investors can thus personally contribute to the success of a promising company with their private equity investment. Moreover, more and more investors are considering private equity as an important category in their portfolios, as direct investments usually offer a significantly higher return potential compared to traditional investments. In addition, private equity investments have lower price volatility compared to other asset classes.
