Asset Management by Zürcher Kantonalbank launches successor product for the Swiss private equity growth fund
Zurich, 18 March 2025
Zürcher Kantonalbank announces the start of the subscription period for “Swisscanto (CH) Private Equity Switzerland Growth II L-QIF KmGK”. This is the successor product of “Swisscanto (CH) Private Equity Switzerland Growth I KmGK ”, which was closed in March 2020.
The new product enables qualified investors with a long-term investment horizon and suitability for illiquid positions to participate in unlisted growth companies in the expansion phase. It focues on direct investment in Swiss companies with innovative technologies and scalable business models in the areas of health, industry and information and data services. The management of the new fund will be implemented on an established and proprietary private equity platform with an experienced team.
Iwan Deplazes, Head of Asset Management at Zürcher Kantonalbank, comments: "With the new fund, qualified investors have the opportunity to tap into attractive risk and liquidity premiums within the private equity asset class and benefit from the low correlation with traditional, liquid equity investments.”
Growing demand and higher average return
Over the past two decades, private markets have grown rapidly around the world. Assets under management in private equity increased 15 times between 2003 and 2023, compared to a tripling in public equity markets.
Private equity investments have also outperformed public markets in the past. On the one hand, this outperformance is based on the expertise and network of investment directors who generate sustainable added value for companies. On the other hand, investments in private equity are generally less liquid than listed equities.
Reducing the capital shortfall in growth companies
Switzerland has a large number of innovative start-ups. The reasons for this include the high-quality educational infrastructure, political stability and favourable regulatory conditions. As a result, Switzerland regularly ranks among the international leaders in terms of innovation. Nevertheless, there is often a lack of risk capital for local companies in the growth phase. “The planned private equity fund can contribute to reducing the financing shortfall of growth companies in the expansion phase ,” says Deplazes.
The majority of the investments will therefore also be made in companies based and operating in Switzerland. These investments constitute alternative investments in private equity pursuant to Art. 53 para. 1(dter) and/or (e) of the Ordinance. These investments can therefore be subsumed under the “non-listed Swiss investments” asset class.
Third private equity programme
The growth fund is the third programme under the private markets initiative of Zürcher Kantonalbank's Asset Management. In addition to the closed “Swisscanto (CH) Private Equity Switzerland Growth I KmGK ”, the “Swisscanto (CH) Private Equity World Carbon Solutions I KmGK”, which specialises in decarbonisation solutions, was also successfully closed at the end of October 2024.
Zürcher Kantonalbank Asset Management
Zürcher Kantonalbank’s Asset Management manages around CHF 300 billion (as at the end of 2024), making it the second largest asset manager in Switzerland. Experienced specialists develop high-quality investment and pension solutions for private investors, companies and institutions under the Swisscanto product brand. All of our Asset Management teams are based in the financial centre of Zurich. Zürcher Kantonalbank’s Asset Management has committed itself to the Net Zero Asset Management initiative and implements a CO2 reduction target as standard in the traditional, actively managed Swisscanto investment funds in line with the Paris climate agreement. Swisscanto investment funds regularly receive national and international awards.
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