An entrepreneurial fund to feed start-ups and innovative small firms launched by Switzerland's two largest banks has cleared a key hurdle.
The project represents a rare link-up between Switzerland's private and public sector: the Swiss Entrepreneurs Foundation, or SEF, has clinched regulatory approval for a new fund, it said on Thursday. The fund has already won $100 million from Swiss insurer Mobiliar of $500 million targeted.
The fund, which hopes to begin making three- to five-year investment commitments in the second quarter, said it has identified funding gaps for innovative growth firms – which it sees as small- and mid-sized businesses beyond a start-up phase but not yet fully established.
The banks will effectively manage the fund as well as its distribution, which will be marketed to institutional investors such as pension funds, wealthy individuals, and family offices. UBS and Credit Suisse aren't investing funds themselves.
Swiss Economy
UBS banker Lukas Gaehwiler and Credit Suisse's Thomas Gottstein said the two major banks want to do more to promote entrepreneurs in Switzerland (both banks are targeting the segment as clients as well).
By investing in Swiss-based firms, the fund hopes to reinforce the domestic economy and contribute to growth, economics minister Guy Parmelin said. His predecessor, Johann Schneider-Ammann, who is also part of the project, said «start-ups are a key pillar of Switzerland's model for success. We want companies to be founded and developed here, and for the value and new jobs to remain here».
